Looking to balance out your exposure to SMX? The ETFs below have the lowest correlation with SMX — they tend to move on their own, which can help reduce risk when SMX drops. The stock ideas table highlights individual companies that behave independently from SMX.
Best Diversifiers for SMX
4 ETFs have low correlation with SMX (below 0.3), 0 of which are negatively correlated. The least correlated is Global X US Infrastructure Development ETF (PAVE) (Utilities Equities) with a 1Y correlation of 0.23, up from 0.11 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Global X US Infrastructure Development ETF | 0.23 | 0.11 | — | 59 | Utilities Equities | SMX vs PAVE | |
| Direxion Daily Semiconductor Bull 3X ETF | 0.23 | 0.09 | — | 97 | Leveraged Equities, Semiconductors | SMX vs SOXL | |
| Invesco S&P 500 Momentum ETF | 0.23 | 0.13 | — | 75 | Momentum, S&P 500 | SMX vs SPMO | |
| iShares Semiconductor ETF | 0.23 | 0.09 | — | 97 | Semiconductors, Technology Equities | SMX vs SOXX |
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SMX, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SMX and solid risk/return profiles. The least correlated is Silicon Motion Technology Corporation (SIMO) (Technology) with a 1Y correlation of 0.19, up from 0.08 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Silicon Motion Technology Corporation | 0.19 | 0.08 | — | 99 | Technology |
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