Looking to balance out your exposure to RLJ? The ETFs below have the lowest correlation with RLJ — they tend to move on their own, which can help reduce risk when RLJ drops. The stock ideas table highlights individual companies that behave independently from RLJ.
Best Diversifiers for RLJ
6 ETFs have low correlation with RLJ (below 0.3), 1 of which are negatively correlated. The least correlated is Breakwave Tanker Shipping ETF (BWET) (Commodities) with a 1Y correlation of -0.00, roughly unchanged from -0.01 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Breakwave Tanker Shipping ETF | -0.00 | -0.01 | — | 99 | Commodities | RLJ vs BWET | |
| Franklin FTSE South Korea ETF | 0.18 | 0.24 | 0.33 | 86 | South Korea Equities, Asia Pacific Equities | RLJ vs FLKR | |
| SPDR S&P Oil & Gas Equipment & Services ETF | 0.19 | 0.33 | 0.42 | 86 | Energy Equities | RLJ vs XES | |
| Invesco S&P 500 Momentum ETF | 0.21 | 0.31 | 0.42 | 51 | Momentum, S&P 500 | RLJ vs SPMO | |
| iShares Semiconductor ETF | 0.23 | 0.30 | 0.40 | 91 | Semiconductors, Technology Equities | RLJ vs SOXX |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from RLJ, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to RLJ and solid risk/return profiles. The least correlated is EPR Properties (EPR) (Real Estate) with a 1Y correlation of 0.32, down from 0.52 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| EPR Properties | 0.32 | 0.41 | 0.52 | 57 | Real Estate | |
| Annaly Capital Management, Inc. | 0.38 | 0.42 | 0.47 | 86 | Real Estate | |
| First Horizon Corporation | 0.40 | 0.41 | 0.41 | 67 | Financial Services | |
| The PNC Financial Services Group, Inc. | 0.44 | 0.48 | 0.49 | 81 | Financial Services |
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