Looking to diversify beyond SOFR? The ETFs below have the lowest correlation with SOFR — they tend to move on their own, which can help reduce risk when the rest of your portfolio drops. The stock ideas table highlights individual companies that behave independently from SOFR.
Best Diversifiers for SOFR
1150 ETFs have low correlation with SOFR (below 0.3), 693 of which are negatively correlated. The least correlated is First Trust Alternative Absolute Return Strategy ETF (FAAR) (Commodities) with a 1Y correlation of -0.13, roughly unchanged from -0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| First Trust Alternative Absolute Return Strategy E... | -0.13 | -0.09 | -0.09 | 70 | Commodities | SOFR vs FAAR | |
| First Trust Multi-Strategy Alternative ETF | -0.13 | — | — | 89 | Global Allocation | SOFR vs LALT | |
| iMGP DBi Managed Futures Strategy ETF | -0.13 | — | — | 78 | Systematic Trend | SOFR vs DBMF | |
| iShares Managed Futures Active ETF | -0.13 | — | — | 90 | Systematic Trend | SOFR vs ISMF | |
| NestYield Dynamic Income ETF | -0.12 | -0.08 | -0.08 | 59 | Derivative Income | SOFR vs EGGY |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SOFR, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SOFR and solid risk/return profiles.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Viking Therapeutics, Inc. | 0.05 | — | — | 55 | Healthcare |
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