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
319 ETFs have low correlation with SMH (below 0.3), 61 of which are negatively correlated.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| YieldMax Short MSTR Option Income Strategy ETF | -0.37 | — | — | 51 | Derivative Income | SMH vs WNTR | |
| iShares iBonds Oct 2027 Term TIPS ETF | -0.21 | — | — | 96 | Inflation-Protected Bonds | SMH vs IBID | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.19 | — | — | 98 | Inflation-Protected Bonds | SMH vs IBIC | |
| F/m Ultrashort Treasury Inflation-Protected Securi... | -0.17 | — | — | 97 | Inflation-Protected Bonds | SMH vs RBIL | |
| WisdomTree Floating Rate Treasury Fund | -0.16 | -0.09 | -0.04 | 100 | Government Bonds, Ultrashort Bond | SMH vs USFR |
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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 -0.34, down from -0.08 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.34 | -0.21 | -0.08 | 74 | Consumer Defensive | |
| Duke Energy Corporation | -0.27 | -0.21 | -0.12 | 64 | Utilities | |
| Chubb Limited | -0.27 | -0.11 | 0.04 | 72 | Financial Services | |
| BCE Inc. | -0.24 | -0.10 | 0.07 | 59 | Communication Services | |
| Colgate-Palmolive Company | -0.23 | -0.14 | -0.05 | 50 | Consumer Defensive |
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