Looking to balance out your exposure to TWO? The ETFs below have the lowest correlation with TWO — they tend to move on their own, which can help reduce risk when TWO drops. The stock ideas table highlights individual companies that behave independently from TWO.
Best Diversifiers for TWO
3 ETFs have low correlation with TWO (below 0.3), 0 of which are negatively correlated. The least correlated is Global X NASDAQ 100 Covered Call ETF (QYLD) (Nasdaq-100) with a 1Y correlation of 0.15, down from 0.39 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Global X NASDAQ 100 Covered Call ETF | 0.15 | 0.28 | 0.39 | 89 | Nasdaq-100, Derivative Income | TWO vs QYLD | |
| Vanguard S&P 500 ETF | 0.25 | 0.42 | 0.50 | 74 | S&P 500 | TWO vs VOO | |
| State Street SPDR S&P 500 ETF | 0.25 | 0.42 | 0.50 | 74 | S&P 500 | TWO vs SPY | |
| Schwab U.S. Dividend Equity ETF | 0.39 | 0.54 | 0.55 | 85 | Dividend | TWO vs SCHD |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from TWO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to TWO and solid risk/return profiles. The least correlated is Reaves Utility Income Trust (UTG) (Financial Services) with a 1Y correlation of 0.02, down from 0.33 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Reaves Utility Income Trust | 0.02 | 0.26 | 0.33 | 79 | Financial Services | |
| The Williams Companies, Inc. | 0.03 | 0.23 | 0.32 | 71 | Energy | |
| Kiniksa Pharmaceuticals, Ltd. | 0.04 | 0.19 | 0.21 | 84 | Healthcare | |
| The Coca-Cola Company | 0.06 | 0.12 | 0.20 | 62 | Consumer Defensive | |
| Energy Transfer LP | 0.06 | 0.23 | 0.32 | 74 | Energy |
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