Looking to balance out your exposure to NREF? The ETFs below have historically moved differently from NREF, 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 NREF
2 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 0.28, roughly unchanged from 0.36 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Vanguard S&P 500 ETF | 0.28 | 0.32 | 0.36 | 68 | S&P 500 | NREF vs VOO | |
| Vanguard Total World Stock ETF | 0.30 | 0.37 | 0.39 | 70 | Global Equities | NREF vs VT | |
| Schwab U.S. Dividend Equity ETF | 0.38 | 0.46 | 0.45 | 95 | Dividend | NREF vs SCHD | |
| Invesco KBW Premium Yield Equity REIT ETF | 0.55 | 0.55 | 0.51 | 81 | REIT, Dividend | NREF vs KBWY |
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for NREF, 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 General Dynamics Corporation (GD) (Industrials) with a 1Y correlation of 0.16, roughly unchanged from 0.24 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| General Dynamics Corporation | 0.16 | 0.20 | 0.24 | 78 | Industrials | |
| Realty Income Corporation | 0.23 | 0.34 | 0.36 | 77 | Real Estate | |
| NNN REIT, Inc. | 0.28 | 0.35 | 0.36 | 80 | Real Estate | |
| ARMOUR Residential REIT, Inc. | 0.32 | 0.38 | 0.38 | 68 | Real Estate | |
| Two Harbors Investment Corp. | 0.35 | 0.45 | 0.46 | 75 | Real Estate |
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