Looking to diversify beyond SMH? The ETFs below have the lowest correlation with SMH — 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 SMH.
Best Diversifiers for SMH
353 ETFs have low correlation with SMH (below 0.3), 96 of which are negatively correlated. The least correlated is Invesco DB Energy Fund (DBE) (Oil & Gas) with a 1Y correlation of -0.24, down from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Energy Fund | -0.24 | -0.04 | 0.06 | 71 | Oil & Gas | SMH vs DBE | |
| United States Oil Fund LP | -0.23 | -0.03 | 0.05 | 66 | Oil & Gas | SMH vs USO | |
| United States Brent Oil Fund LP | -0.22 | -0.03 | 0.06 | 65 | Oil & Gas | SMH vs BNO | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.22 | — | — | 98 | Inflation-Protected Bonds | SMH vs IBIC | |
| iShares iBonds Oct 2027 Term TIPS ETF | -0.21 | — | — | 97 | Inflation-Protected Bonds | SMH vs IBID |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SMH, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SMH and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.30, down from -0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.30 | -0.19 | -0.06 | 69 | Consumer Defensive | |
| Duke Energy Corporation | -0.26 | -0.21 | -0.11 | 53 | Utilities | |
| Chubb Limited | -0.24 | -0.09 | 0.05 | 51 | Financial Services | |
| Verizon Communications Inc. | -0.24 | -0.16 | -0.05 | 59 | Communication Services | |
| The Coca-Cola Company | -0.17 | -0.15 | 0.02 | 66 | Consumer Defensive |
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