Looking to balance out your exposure to SMG? The ETFs below have the lowest correlation with SMG — they tend to move on their own, which can help reduce risk when SMG drops. The stock ideas table highlights individual companies that behave independently from SMG.
Best Diversifiers for SMG
0 ETFs have low correlation with SMG (below 0.3), 0 of which are negatively correlated. The least correlated is First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) (Alternative Energy Equities) with a 1Y correlation of 0.34, down from 0.48 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| First Trust Nasdaq Clean Edge Smart GRID Infrastru... | 0.34 | 0.43 | 0.48 | 80 | Alternative Energy Equities | SMG vs GRID | |
| State Street SPDR S&P 500 ETF | 0.35 | 0.40 | 0.48 | 74 | S&P 500 | SMG vs SPY | |
| Schwab U.S. Dividend Equity ETF | 0.44 | 0.49 | 0.51 | 85 | Dividend | SMG vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SMG, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SMG and solid risk/return profiles. The least correlated is NVIDIA Corporation (NVDA) (Technology) with a 1Y correlation of 0.07, down from 0.29 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| NVIDIA Corporation | 0.07 | 0.13 | 0.29 | 80 | Technology | |
| Archer-Daniels-Midland Company | 0.08 | 0.21 | 0.20 | 94 | Consumer Defensive | |
| Intel Corporation | 0.16 | 0.22 | 0.30 | 98 | Technology | |
| Dow Inc. | 0.16 | 0.32 | 0.36 | 59 | Basic Materials | |
| Jazz Pharmaceuticals plc | 0.19 | 0.26 | 0.27 | 97 | Healthcare |
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