Looking to balance out your exposure to NREF? The ETFs below have the lowest correlation with NREF — they tend to move on their own, which can help reduce risk when NREF drops. The stock ideas table highlights individual companies that behave independently from NREF.
Best Diversifiers for NREF
1 ETFs have low correlation with NREF (below 0.3), 0 of which are negatively correlated. The least correlated is Vanguard S&P 500 ETF (VOO) (S&P 500) with a 1Y correlation of 0.29, roughly unchanged from 0.36 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard S&P 500 ETF | 0.29 | 0.32 | 0.36 | 66 | S&P 500 | NREF vs VOO | |
| Vanguard Total World Stock ETF | 0.31 | 0.36 | 0.39 | 63 | Global Equities | NREF vs VT | |
| Schwab U.S. Dividend Equity ETF | 0.38 | 0.46 | 0.45 | 86 | Dividend | NREF vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from NREF, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to NREF and solid risk/return profiles. The least correlated is Realty Income Corporation (O) (Real Estate) with a 1Y correlation of 0.25, down from 0.36 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Realty Income Corporation | 0.25 | 0.34 | 0.36 | 74 | Real Estate | |
| NNN REIT, Inc. | 0.28 | 0.35 | 0.35 | 73 | Real Estate | |
| ARMOUR Residential REIT, Inc. | 0.31 | 0.37 | 0.37 | 67 | Real Estate | |
| Dynex Capital, Inc. | 0.36 | 0.41 | 0.40 | 73 | Real Estate | |
| Two Harbors Investment Corp. | 0.37 | 0.45 | 0.45 | 70 | Real Estate |
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