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
296 ETFs have low correlation with SPY (below 0.3), 74 of which are negatively correlated. The least correlated is Invesco DB Energy Fund (DBE) (Oil & Gas) 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 | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Energy Fund | -0.33 | -0.07 | 0.09 | 71 | Oil & Gas | SPY vs DBE | |
| United States Oil Fund LP | -0.33 | -0.07 | 0.07 | 66 | Oil & Gas | SPY vs USO | |
| United States Brent Oil Fund LP | -0.31 | -0.06 | 0.07 | 65 | Oil & Gas | SPY vs BNO | |
| Defiance Oil Enhanced Options Income ETF | -0.29 | — | — | 56 | Derivative Income | SPY vs USOY | |
| ProShares K-1 Free Crude Oil Strategy ETF | -0.29 | -0.04 | 0.10 | 55 | Oil & Gas | SPY vs OILK |
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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 CF Industries Holdings, Inc. (CF) (Basic Materials) with a 1Y correlation of -0.24, down from 0.16 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| CF Industries Holdings, Inc. | -0.24 | 0.06 | 0.16 | 60 | Basic Materials | |
| Altria Group, Inc. | -0.21 | 0.01 | 0.15 | 69 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.17 | 0.05 | 0.22 | 85 | Energy | |
| Duke Energy Corporation | -0.15 | -0.01 | 0.14 | 53 | Utilities | |
| Chevron Corporation | -0.15 | 0.09 | 0.25 | 83 | Energy |
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