Looking to balance out your exposure to STE? The ETFs below have the lowest correlation with STE — they tend to move on their own, which can help reduce risk when STE drops. The stock ideas table highlights individual companies that behave independently from STE.
Best Diversifiers for STE
8 ETFs have low correlation with STE (below 0.3), 1 of which are negatively correlated. The least correlated is State Street Technology Select Sector SPDR ETF (XLK) (Technology Equities) with a 1Y correlation of -0.00, down from 0.35 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Technology Select Sector SPDR ETF | -0.00 | 0.17 | 0.35 | 54 | Technology Equities | STE vs XLK | |
| Fidelity MSCI Information Technology Index ETF | 0.01 | 0.17 | 0.35 | 51 | Technology Equities | STE vs FTEC | |
| Vanguard Information Technology ETF | 0.01 | 0.17 | 0.35 | 50 | Technology Equities | STE vs VGT | |
| iShares Expanded Tech Sector ETF | 0.02 | 0.17 | 0.35 | 54 | Technology Equities | STE vs IGM | |
| First Trust NASDAQ-100 Technology Sector Index Fun... | 0.08 | 0.21 | 0.37 | 56 | Nasdaq-100, Technology Equities | STE vs QTEC |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from STE, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to STE and solid risk/return profiles. The least correlated is Cadence Design Systems, Inc. (CDNS) (Technology) with a 1Y correlation of -0.01, down from 0.27 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Cadence Design Systems, Inc. | -0.01 | 0.13 | 0.27 | 57 | Technology | |
| Electronic Arts Inc. | 0.05 | 0.23 | 0.29 | 96 | Communication Services | |
| F5 Networks, Inc. | 0.08 | 0.18 | 0.34 | 71 | Technology | |
| TC Energy Corporation | 0.08 | 0.16 | 0.23 | 96 | Energy | |
| CVS Health Corporation | 0.09 | 0.16 | 0.23 | 92 | Healthcare |
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Build a portfolio that complements STE
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Analyze a portfolio with STE