Looking to balance out your exposure to STWD? The ETFs below have the lowest correlation with STWD — they tend to move on their own, which can help reduce risk when STWD drops. The stock ideas table highlights individual companies that behave independently from STWD.
Best Diversifiers for STWD
5 ETFs have low correlation with STWD (below 0.3), 0 of which are negatively correlated. The least correlated is VanEck Semiconductor ETF (SMH) (Semiconductors) with a 1Y correlation of 0.07, down from 0.38 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| VanEck Semiconductor ETF | 0.07 | 0.24 | 0.38 | 94 | Semiconductors, Technology Equities | STWD vs SMH | |
| Invesco NASDAQ 100 ETF | 0.12 | 0.31 | 0.45 | 60 | Nasdaq-100 | STWD vs QQQM | |
| Global X NASDAQ 100 Covered Call ETF | 0.14 | 0.28 | 0.43 | 84 | Nasdaq-100, Derivative Income | STWD vs QYLD | |
| JPMorgan Nasdaq Equity Premium Income ETF | 0.14 | 0.31 | — | 63 | Nasdaq-100, Derivative Income | STWD vs JEPQ | |
| State Street SPDR S&P 500 ETF | 0.27 | 0.45 | 0.57 | 59 | S&P 500 | STWD vs SPY |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from STWD, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to STWD and solid risk/return profiles. The least correlated is Energy Transfer LP (ET) (Energy) with a 1Y correlation of 0.00, down from 0.36 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Energy Transfer LP | 0.00 | 0.24 | 0.36 | 72 | Energy | |
| Eli Lilly and Company | 0.00 | 0.08 | 0.12 | 74 | Healthcare | |
| Chevron Corporation | 0.06 | 0.23 | 0.33 | 70 | Energy | |
| Ocular Therapeutix, Inc. | 0.08 | 0.26 | 0.33 | 53 | Healthcare | |
| Sabra Health Care REIT, Inc. | 0.08 | 0.28 | 0.41 | 51 | Real Estate |
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Build a portfolio that complements STWD
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