Looking to balance out your exposure to SFL? The ETFs below have the lowest correlation with SFL — they tend to move on their own, which can help reduce risk when SFL drops. The stock ideas table highlights individual companies that behave independently from SFL.
Best Diversifiers for SFL
3 ETFs have low correlation with SFL (below 0.3), 0 of which are negatively correlated. The least correlated is Fidelity MSCI Information Technology Index ETF (FTEC) (Technology Equities) with a 1Y correlation of 0.14, roughly unchanged from 0.23 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Fidelity MSCI Information Technology Index ETF | 0.14 | 0.19 | 0.23 | 77 | Technology Equities | SFL vs FTEC | |
| State Street SPDR S&P 500 ETF | 0.19 | 0.25 | 0.31 | 70 | S&P 500 | SFL vs SPY | |
| Vanguard S&P 500 ETF | 0.19 | 0.25 | 0.31 | 70 | S&P 500 | SFL vs VOO | |
| Schwab U.S. Dividend Equity ETF | 0.30 | 0.35 | 0.39 | 80 | Dividend | SFL vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SFL, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SFL and solid risk/return profiles. The least correlated is Reaves Utility Income Trust (UTG) (Financial Services) with a 1Y correlation of 0.04, down from 0.21 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Reaves Utility Income Trust | 0.04 | 0.15 | 0.21 | 78 | Financial Services | |
| Eversource Energy | 0.09 | 0.09 | 0.11 | 51 | Utilities | |
| Dycom Industries, Inc. | 0.16 | 0.22 | 0.28 | 90 | Industrials | |
| Enterprise Products Partners L.P. | 0.16 | 0.24 | 0.34 | 85 | Energy | |
| Kiniksa Pharmaceuticals, Ltd. | 0.18 | 0.14 | 0.14 | 83 | Healthcare |
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