Looking to diversify beyond NATO? The ETFs below have historically moved differently from NATO, 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 NATO
358 ETFs have low correlation with NATO (below 0.3), 82 of which are negatively correlated.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Short Bitcoin ETF | -0.38 | — | — | 51 | Cryptocurrency | NATO vs BITI | |
| YieldMax MSTR Short Option Income Strategy ETF | -0.37 | — | — | 69 | Derivative Income | NATO vs WNTR | |
| F/m Ultrashort Treasury Inflation-Protected Securi... | -0.26 | — | — | 97 | Inflation-Protected Bonds | NATO vs RBIL | |
| Invesco DB Energy Fund | -0.25 | — | — | 66 | Oil & Gas | NATO vs DBE | |
| United States Gasoline Fund, LP | -0.24 | -0.14 | -0.14 | 83 | Oil & Gas | NATO vs UGA |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for NATO, 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 Duke Energy Corporation (DUK) (Utilities) with a 1Y correlation of -0.05, roughly unchanged from 0.00 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Duke Energy Corporation | -0.05 | 0.00 | 0.00 | 52 | Utilities | |
| Energy Transfer LP | 0.01 | 0.12 | 0.12 | 82 | Energy | |
| CVS Health Corporation | 0.02 | 0.07 | 0.07 | 93 | Healthcare | |
| Berkshire Hathaway Inc. | 0.07 | — | — | 61 | Financial Services | |
| British American Tobacco p.l.c. | 0.09 | 0.10 | 0.10 | 64 | Consumer Defensive |
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