Looking to diversify beyond SMH? The ETFs below have historically moved differently from SMH, 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 SMH
425 ETFs have low correlation with SMH (below 0.3), 101 of which are negatively correlated.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| YieldMax MSTR Short Option Income Strategy ETF | -0.36 | — | — | 63 | Derivative Income | SMH vs WNTR | |
| First Trust Morningstar Dividend Leaders Index Fun... | -0.18 | 0.05 | 0.23 | 91 | Large Cap Value Equities, Dividend | SMH vs FDL | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.18 | -0.10 | -0.10 | 98 | Inflation-Protected Bonds | SMH vs IBIC | |
| iShares Core High Dividend ETF | -0.18 | 0.01 | 0.21 | 88 | Dividend, Large Cap Value Equities | SMH vs HDV | |
| iShares iBonds Oct 2027 Term TIPS ETF | -0.18 | — | — | 96 | Inflation-Protected Bonds | SMH vs IBID |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for SMH, 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 Chubb Limited (CB) (Financial Services) with a 1Y correlation of -0.41, down from 0.02 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chubb Limited | -0.41 | -0.18 | 0.02 | 86 | Financial Services | |
| Altria Group, Inc. | -0.38 | -0.23 | -0.10 | 64 | Consumer Defensive | |
| Colgate-Palmolive Company | -0.33 | -0.21 | -0.08 | 59 | Consumer Defensive | |
| The Coca-Cola Company | -0.30 | -0.20 | -0.02 | 86 | Consumer Defensive | |
| Verizon Communications Inc. | -0.30 | -0.19 | -0.07 | 63 | Communication Services |
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