Looking to diversify beyond SDY? The ETFs below have historically moved differently from SDY, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for SDY
803 ETFs have low correlation with SDY (below 0.3), 68 of which are negatively correlated. The least correlated is Invesco DB Energy Fund (DBE) (Oil & Gas) with a 1Y correlation of -0.22, down from 0.08 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Energy Fund | -0.22 | -0.09 | 0.08 | 72 | Oil & Gas | SDY vs DBE | |
| ProShares UltraShort Yen | -0.21 | -0.16 | -0.11 | 56 | Leveraged Currency | SDY vs YCS | |
| Invesco DB Oil Fund | -0.20 | -0.08 | 0.08 | 58 | Oil & Gas | SDY vs DBO | |
| United States Gasoline Fund, LP | -0.20 | -0.08 | 0.08 | 87 | Oil & Gas | SDY vs UGA | |
| United States Brent Oil Fund LP | -0.20 | -0.08 | 0.06 | 52 | Oil & Gas | SDY vs BNO |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for SDY, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Credo Technology Group Holding Ltd (CRDO) (Technology) with a 1Y correlation of -0.17, down from 0.14 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Credo Technology Group Holding Ltd | -0.17 | 0.01 | 0.14 | 74 | Technology | |
| NVIDIA Corporation | -0.13 | 0.01 | 0.22 | 56 | Technology | |
| Broadcom Inc. | -0.13 | 0.07 | 0.24 | 67 | Technology | |
| CrowdStrike Holdings, Inc. | -0.11 | 0.07 | 0.19 | 80 | Technology | |
| Seagate Technology plc | -0.10 | 0.16 | 0.33 | 99 | Technology |
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