Looking to balance out your exposure to SMR? The ETFs below have the lowest correlation with SMR — they tend to move on their own, which can help reduce risk when SMR drops. The stock ideas table highlights individual companies that behave independently from SMR.
Best Diversifiers for SMR
90 ETFs have low correlation with SMR (below 0.3), 28 of which are negatively correlated. The least correlated is iShares Core High Dividend ETF (HDV) (Dividend) with a 1Y correlation of -0.13, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares Core High Dividend ETF | -0.13 | 0.10 | 0.15 | 78 | Dividend, Large Cap Value Equities | SMR vs HDV | |
| Franklin U.S. Low Volatility High Dividend Index E... | -0.10 | 0.09 | 0.12 | 53 | Dividend | SMR vs LVHD | |
| Vanguard Ultra-Short Treasury ETF | -0.10 | -0.11 | -0.11 | 100 | Ultrashort Bond, Government Bonds | SMR vs VGUS | |
| Invesco DB US Dollar Index Bullish Fund | -0.09 | -0.11 | -0.12 | 51 | Currency | SMR vs UUP | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.07 | -0.05 | -0.03 | 100 | Government Bonds, Ultrashort Bond | SMR vs BIL |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SMR, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SMR and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.27, down from -0.01 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.27 | -0.06 | -0.01 | 81 | Consumer Defensive | |
| Chubb Limited | -0.26 | -0.07 | 0.02 | 86 | Financial Services | |
| The Coca-Cola Company | -0.23 | -0.08 | -0.03 | 83 | Consumer Defensive | |
| Colgate-Palmolive Company | -0.22 | -0.10 | -0.06 | 53 | Consumer Defensive | |
| Waste Management, Inc. | -0.22 | -0.01 | 0.03 | 53 | Industrials |
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