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
434 ETFs have low correlation with SMH (below 0.3), 93 of which are negatively correlated.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| T-REX 2X Inverse MSTR Daily Target ETF | -0.35 | — | — | 61 | Inverse Equities, Leveraged Equities | SMH vs MSTZ | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.34 | — | — | 69 | Derivative Income | SMH vs WNTR | |
| Alpha Architect Tail Risk ETF | -0.33 | -0.09 | — | 53 | Options Trading | SMH vs CAOS | |
| Texas Capital Government Money Market ETF | -0.19 | — | — | 100 | Money Market | SMH vs MMKT | |
| iShares iBonds Oct 2027 Term TIPS ETF | -0.18 | — | — | 96 | 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 Chubb Limited (CB) (Financial Services) with a 1Y correlation of -0.40, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chubb Limited | -0.40 | -0.17 | 0.03 | 81 | Financial Services | |
| Waste Management, Inc. | -0.39 | -0.12 | 0.04 | 51 | Industrials | |
| Altria Group, Inc. | -0.36 | -0.22 | -0.09 | 77 | Consumer Defensive | |
| Duke Energy Corporation | -0.35 | -0.25 | -0.13 | 63 | Utilities | |
| W. R. Berkley Corporation | -0.32 | -0.12 | 0.04 | 53 | Financial Services |
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