Looking to balance out your exposure to R? The ETFs below have the lowest correlation with R — they tend to move on their own, which can help reduce risk when R drops. The stock ideas table highlights individual companies that behave independently from R.
Best Diversifiers for R
0 ETFs have low correlation with R (below 0.3), 0 of which are negatively correlated. The least correlated is State Street Health Care Select Sector SPDR ETF (XLV) (Health & Biotech Equities) with a 1Y correlation of 0.33, roughly unchanged from 0.35 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Health Care Select Sector SPDR ETF | 0.33 | 0.33 | 0.35 | 50 | Health & Biotech Equities | R vs XLV | |
| Invesco NASDAQ 100 ETF | 0.39 | 0.41 | 0.46 | 54 | Nasdaq-100 | R vs QQQM | |
| Vanguard S&P 500 ETF | 0.47 | 0.51 | 0.56 | 66 | S&P 500 | R vs VOO | |
| State Street SPDR S&P 500 ETF | 0.48 | 0.51 | 0.56 | 65 | S&P 500 | R vs SPY | |
| Vanguard Value ETF | 0.62 | 0.62 | 0.62 | 91 | Large Cap Value Equities | R vs VTV |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from R, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to R and solid risk/return profiles. The least correlated is Welltower Inc. (WELL) (Real Estate) with a 1Y correlation of 0.02, down from 0.21 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Welltower Inc. | 0.02 | 0.13 | 0.21 | 93 | Real Estate | |
| Spire Inc. | 0.04 | 0.19 | 0.22 | 60 | Utilities | |
| Energy Transfer LP | 0.07 | 0.26 | 0.32 | 83 | Energy | |
| Marathon Petroleum Corporation | 0.09 | 0.26 | 0.34 | 93 | Energy | |
| Teekay Tankers Ltd. | 0.13 | 0.12 | 0.17 | 86 | Energy |
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