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
4 ETFs have low correlation with RMD (below 0.3), 1 of which are negatively correlated. The least correlated is ProShares Ultra Semiconductors (USD) (Leveraged Equities) with a 1Y correlation of -0.02, down from 0.28 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Ultra Semiconductors | -0.02 | 0.17 | 0.28 | 60 | Leveraged Equities, Semiconductors | RMD vs USD | |
| iShares 0-3 Month Treasury Bond ETF | 0.10 | 0.02 | -0.00 | 100 | Ultrashort Bond | RMD vs SGOV | |
| State Street SPDR S&P 500 ETF | 0.23 | 0.37 | 0.46 | 65 | S&P 500 | RMD vs SPY | |
| iShares Core S&P 500 ETF | 0.24 | 0.37 | 0.46 | 66 | S&P 500 | RMD vs IVV | |
| State Street Health Care Select Sector SPDR ETF | 0.50 | 0.47 | 0.54 | 50 | Health & Biotech Equities | RMD vs XLV |
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 Arista Networks, Inc. (ANET) (Technology) with a 1Y correlation of -0.04, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Arista Networks, Inc. | -0.04 | 0.11 | 0.22 | 74 | Technology | |
| Micron Technology, Inc. | -0.03 | 0.13 | 0.21 | 99 | Technology | |
| Sabine Royalty Trust | -0.02 | 0.04 | 0.10 | 66 | Energy | |
| CrowdStrike Holdings, Inc. | -0.01 | 0.13 | 0.24 | 81 | Technology | |
| Seagate Technology plc | -0.01 | 0.13 | 0.22 | 98 | Technology |
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