Looking to balance out your exposure to RMD? The ETFs below have the lowest correlation with RMD — they tend to move on their own, which can help reduce risk when RMD drops. The stock ideas table highlights individual companies that behave independently from RMD.
Best Diversifiers for RMD
2 ETFs have low correlation with RMD (below 0.3), 0 of which are negatively correlated. The least correlated is iShares 0-3 Month Treasury Bond ETF (SGOV) (Ultrashort Bond) with a 1Y correlation of 0.07, roughly unchanged from -0.02 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares 0-3 Month Treasury Bond ETF | 0.07 | 0.02 | -0.02 | 100 | Ultrashort Bond | RMD vs SGOV | |
| ProShares Ultra Semiconductors | 0.12 | 0.22 | 0.31 | 90 | Leveraged Equities, Semiconductors | RMD vs USD | |
| State Street SPDR S&P 500 ETF | 0.31 | 0.40 | 0.47 | 70 | S&P 500 | RMD vs SPY | |
| iShares Core S&P 500 ETF | 0.31 | 0.40 | 0.47 | 70 | S&P 500 | RMD vs IVV |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from RMD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to RMD and solid risk/return profiles. The least correlated is CF Industries Holdings, Inc. (CF) (Basic Materials) with a 1Y correlation of -0.04, down from 0.07 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| CF Industries Holdings, Inc. | -0.04 | 0.04 | 0.07 | 60 | Basic Materials | |
| Altria Group, Inc. | -0.02 | 0.12 | 0.13 | 69 | Consumer Defensive | |
| Oracle Corporation | -0.02 | 0.17 | 0.25 | 58 | Technology | |
| CrowdStrike Holdings, Inc. | 0.01 | 0.15 | 0.25 | 70 | Technology | |
| Chevron Corporation | 0.01 | 0.09 | 0.13 | 83 | Energy |
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