Looking to diversify beyond SPY? The ETFs below have the lowest correlation with SPY — 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 SPY.
Best Diversifiers for SPY
309 ETFs have low correlation with SPY (below 0.3), 57 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 | -0.49 | — | — | 61 | Inverse Equities, Leveraged Equities | SPY vs MSTZ | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.47 | — | — | 69 | Derivative Income | SPY vs WNTR | |
| Alpha Architect Tail Risk ETF | -0.34 | -0.05 | — | 53 | Options Trading | SPY vs CAOS | |
| Invesco DB Energy Fund | -0.27 | -0.07 | 0.08 | 58 | Oil & Gas | SPY vs DBE | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.22 | — | — | 98 | Inflation-Protected Bonds | SPY vs IBIC |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from SPY, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to SPY and solid risk/return profiles. The least correlated is Consolidated Edison, Inc. (ED) (Utilities) with a 1Y correlation of -0.33, down from 0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Consolidated Edison, Inc. | -0.33 | -0.08 | 0.09 | 69 | Utilities | |
| Cheniere Energy, Inc. | -0.27 | 0.06 | 0.20 | 55 | Energy | |
| Altria Group, Inc. | -0.26 | -0.02 | 0.13 | 77 | Consumer Defensive | |
| New Jersey Resources Corporation | -0.26 | 0.06 | 0.23 | 88 | Utilities | |
| Duke Energy Corporation | -0.25 | -0.04 | 0.12 | 63 | Utilities |
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