Looking to diversify beyond KYLD? The ETFs below have historically moved differently from KYLD, 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 KYLD
520 ETFs have low correlation with KYLD (below 0.3), 77 of which are negatively correlated. The least correlated is T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) (Inverse Equities) with a 1Y correlation of -0.55, roughly unchanged from -0.55 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| T-REX 2X Inverse MSTR Daily Target ETF | -0.55 | -0.55 | -0.55 | 61 | Inverse Equities, Leveraged Equities | KYLD vs MSTZ | |
| YieldMax MSTR Short Option Income Strategy ETF | -0.52 | -0.52 | -0.52 | 75 | Derivative Income | KYLD vs WNTR | |
| Alpha Architect Tail Risk ETF | -0.24 | -0.24 | -0.24 | 56 | Options Trading | KYLD vs CAOS | |
| F/m Ultrashort Treasury Inflation-Protected Securi... | -0.20 | -0.20 | -0.20 | 98 | Inflation-Protected Bonds | KYLD vs RBIL | |
| MicroSectors Energy 3X Leveraged ETN | -0.18 | -0.18 | -0.18 | 55 | Leveraged Equities | KYLD vs WTIU |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for KYLD, 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 BlackRock Capital Allocation Term Trust (BCAT) (Financial Services) with a 1Y correlation of 0.62, roughly unchanged from 0.62 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| BlackRock Capital Allocation Term Trust | 0.62 | 0.62 | 0.62 | 95 | Financial Services |
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