Looking to balance out your exposure to NLY? The ETFs below have the lowest correlation with NLY — they tend to move on their own, which can help reduce risk when NLY drops. The stock ideas table highlights individual companies that behave independently from NLY.
Best Diversifiers for NLY
97 ETFs have low correlation with NLY (below 0.3), 7 of which are negatively correlated. The least correlated is United States Oil Fund LP (USO) (Oil & Gas) with a 1Y correlation of -0.22, down from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| United States Oil Fund LP | -0.22 | -0.03 | 0.06 | 66 | Oil & Gas | NLY vs USO | |
| ProShares Ultra Bloomberg Crude Oil | -0.17 | -0.01 | 0.08 | 54 | Leveraged Commodities | NLY vs UCO | |
| Invesco DB Commodity Index Tracking Fund | -0.13 | 0.04 | 0.13 | 75 | Commodities | NLY vs DBC | |
| Invesco Optimum Yield Diversified Commodity Strate... | -0.07 | 0.05 | 0.12 | 74 | Commodities | NLY vs PDBC | |
| Alpha Architect 1-3 Month Box ETF | -0.04 | 0.03 | 0.03 | 100 | Ultrashort Bond | NLY vs BOXX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from NLY, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to NLY and solid risk/return profiles. The least correlated is Exxon Mobil Corporation (XOM) (Energy) with a 1Y correlation of -0.08, down from 0.24 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Exxon Mobil Corporation | -0.08 | 0.12 | 0.24 | 85 | Energy | |
| Chevron Corporation | -0.06 | 0.13 | 0.24 | 83 | Energy | |
| Energy Transfer LP | -0.05 | 0.22 | 0.32 | 69 | Energy | |
| BP p.l.c. | -0.04 | 0.14 | 0.25 | 87 | Energy | |
| Altria Group, Inc. | -0.03 | 0.15 | 0.21 | 69 | Consumer Defensive |
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