Looking to balance out your exposure to EFT? The ETFs below have historically moved differently from EFT, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
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.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| JPMorgan Nasdaq Equity Premium Income ETF | 0.33 | 0.30 | 0.34 | 60 | Nasdaq-100, Derivative Income | EFT vs JEPQ | |
| WisdomTree U.S. Quality Dividend Growth Fund | 0.34 | 0.32 | 0.36 | 64 | Quality Factor, Dividend, Large Cap Growth Equities | EFT vs DGRW | |
| Invesco Senior Loan ETF | 0.36 | 0.33 | 0.38 | 56 | Bank Loan | EFT vs BKLN | |
| iShares MSCI USA Quality Factor ETF | 0.38 | 0.33 | 0.37 | 73 | Quality Factor, Large Cap Blend Equities | EFT vs QUAL | |
| State Street SPDR S&P 500 ETF | 0.39 | 0.34 | 0.38 | 71 | S&P 500 | EFT vs SPY |
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for EFT, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Cohen & Steers Quality Income Realty Fund, Inc. (RQI) (Financial Services) with a 1Y correlation of 0.21, down from 0.32 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cohen & Steers Quality Income Realty Fund, Inc. | 0.21 | 0.23 | 0.32 | 64 | Financial Services |
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