Looking to balance out your exposure to RC? The ETFs below have the lowest correlation with RC — they tend to move on their own, which can help reduce risk when RC drops. The stock ideas table highlights individual companies that behave independently from RC.
Best Diversifiers for RC
4 ETFs have low correlation with RC (below 0.3), 0 of which are negatively correlated. The least correlated is State Street Technology Select Sector SPDR ETF (XLK) (Technology Equities) with a 1Y correlation of 0.15, down from 0.34 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Technology Select Sector SPDR ETF | 0.15 | 0.24 | 0.34 | 83 | Technology Equities | RC vs XLK | |
| Global X NASDAQ 100 Covered Call ETF | 0.20 | 0.26 | 0.34 | 88 | Nasdaq-100, Derivative Income | RC vs QYLD | |
| JPMorgan Nasdaq Equity Premium Income ETF | 0.22 | 0.27 | — | 74 | Nasdaq-100, Derivative Income | RC vs JEPQ | |
| Fidelity Nasdaq Composite Index ETF | 0.24 | 0.32 | 0.40 | 68 | Large Cap Growth Equities | RC vs ONEQ | |
| State Street SPDR S&P 500 ETF | 0.30 | 0.39 | 0.47 | 70 | S&P 500 | RC vs SPY |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from RC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to RC and solid risk/return profiles. The least correlated is Energy Transfer LP (ET) (Energy) with a 1Y correlation of 0.06, down from 0.30 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Energy Transfer LP | 0.06 | 0.20 | 0.30 | 69 | Energy | |
| Petróleo Brasileiro S.A. - Petrobras | 0.10 | 0.17 | 0.19 | 86 | Energy | |
| TORM plc | 0.12 | 0.10 | 0.14 | 88 | Energy | |
| Eaton Vance Tax-Managed Buy-Write Opportunities Fu... | 0.18 | 0.30 | 0.38 | 79 | Financial Services | |
| ARMOUR Residential REIT, Inc. | 0.33 | 0.48 | 0.55 | 67 | Real Estate |
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