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
84 ETFs have low correlation with NLY (below 0.3), 2 of which are negatively correlated. The least correlated is Alpha Architect 1-3 Month Box ETF (BOXX) (Ultrashort Bond) with a 1Y correlation of -0.03, roughly unchanged from 0.01 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Alpha Architect 1-3 Month Box ETF | -0.03 | 0.01 | — | 100 | Ultrashort Bond | NLY vs BOXX | |
| Alerian Energy Infrastructure ETF | -0.01 | 0.28 | 0.41 | 55 | Energy Equities | NLY vs ENFR | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | 0.01 | -0.02 | 0.01 | 100 | Government Bonds, Ultrashort Bond | NLY vs BIL | |
| WisdomTree Floating Rate Treasury Fund | 0.01 | 0.01 | 0.01 | 100 | Government Bonds, Ultrashort Bond | NLY vs USFR | |
| iShares 0-3 Month Treasury Bond ETF | 0.02 | 0.06 | 0.06 | 100 | Ultrashort Bond | NLY vs SGOV |
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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 -0.12, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Exxon Mobil Corporation | -0.12 | 0.10 | 0.22 | 74 | Energy | |
| Chevron Corporation | -0.10 | 0.13 | 0.25 | 70 | Energy | |
| Energy Transfer LP | -0.09 | 0.22 | 0.32 | 70 | Energy | |
| ConocoPhillips Company | -0.07 | 0.11 | 0.20 | 65 | Energy | |
| BP p.l.c. | -0.06 | 0.13 | 0.24 | 75 | Energy |
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Build a portfolio that complements NLY
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