Looking to balance out your exposure to HR? The ETFs below have the lowest correlation with HR — they tend to move on their own, which can help reduce risk when HR drops. The stock ideas table highlights individual companies that behave independently from HR.
Best Diversifiers for HR
5 ETFs have low correlation with HR (below 0.3), 0 of which are negatively correlated. The least correlated is State Street SPDR S&P 500 ETF (SPY) (S&P 500) with a 1Y correlation of 0.14, down from 0.36 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street SPDR S&P 500 ETF | 0.14 | 0.29 | 0.36 | 60 | S&P 500 | HR vs SPY | |
| Vanguard S&P 500 ETF | 0.14 | 0.30 | 0.36 | 60 | S&P 500 | HR vs VOO | |
| Capital Group Dividend Value ETF | 0.21 | 0.33 | — | 72 | Large Cap Value Equities, Dividend | HR vs CGDV | |
| Vanguard Total International Stock ETF | 0.26 | 0.33 | 0.35 | 55 | Global Equities | HR vs VXUS | |
| Schwab U.S. Dividend Equity ETF | 0.29 | 0.42 | 0.44 | 77 | Dividend | HR vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from HR, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to HR and solid risk/return profiles. The least correlated is Capital Southwest Corporation (CSWC) (Financial Services) with a 1Y correlation of 0.18, roughly unchanged from 0.28 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Capital Southwest Corporation | 0.18 | 0.23 | 0.28 | 70 | Financial Services | |
| Innovative Industrial Properties, Inc. | 0.32 | 0.44 | 0.43 | 60 | Real Estate | |
| National Storage Affiliates Trust | 0.35 | 0.48 | 0.50 | 82 | Real Estate | |
| Broadstone Net Lease, Inc. | 0.39 | 0.51 | 0.55 | 89 | Real Estate | |
| Sabra Health Care REIT, Inc. | 0.41 | 0.48 | 0.52 | 56 | Real Estate |
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