Looking to balance out your exposure to EFT? The ETFs below have the lowest correlation with EFT — they tend to move on their own, which can help reduce risk when EFT drops. The stock ideas table highlights individual companies that behave independently from EFT.
Best Diversifiers for EFT
0 ETFs have low correlation with EFT (below 0.3), 0 of which are negatively correlated. The least correlated is JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) (Nasdaq-100) with a 1Y correlation of 0.33, roughly unchanged from 0.34 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| JPMorgan Nasdaq Equity Premium Income ETF | 0.33 | 0.29 | 0.34 | 74 | Nasdaq-100, Derivative Income | EFT vs JEPQ | |
| WisdomTree U.S. Quality Dividend Growth Fund | 0.37 | 0.31 | 0.35 | 60 | Dividend, Large Cap Growth Equities | EFT vs DGRW | |
| iShares MSCI USA Quality Factor ETF | 0.38 | 0.31 | 0.37 | 53 | Large Cap Blend Equities | EFT vs QUAL | |
| State Street SPDR S&P 500 ETF | 0.38 | 0.33 | 0.38 | 70 | S&P 500 | EFT vs SPY |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from EFT, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to EFT and solid risk/return profiles. The least correlated is Cohen & Steers Quality Income Realty Fund (RQI) (Financial Services) with a 1Y correlation of 0.24, roughly unchanged from 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cohen & Steers Quality Income Realty Fund | 0.24 | 0.26 | 0.33 | 67 | Financial Services |
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