Looking to balance out your exposure to TECH? The ETFs below have historically moved differently from TECH, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for TECH
3 ETFs have low correlation with TECH (below 0.3), 0 of which are negatively correlated. The least correlated is State Street Technology Select Sector SPDR ETF (XLK) (Technology Equities) with a 1Y correlation of 0.20, down from 0.42 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| State Street Technology Select Sector SPDR ETF | 0.20 | 0.30 | 0.42 | 61 | Technology Equities | TECH vs XLK | |
| Global X Artificial Intelligence & Technology ETF | 0.25 | 0.34 | 0.45 | 51 | Artificial Intelligence, Technology Equities | TECH vs AIQ | |
| Invesco QQQ ETF | 0.26 | 0.33 | 0.45 | 55 | Nasdaq-100 | TECH vs QQQ | |
| State Street SPDR S&P 500 ETF | 0.35 | 0.42 | 0.51 | 72 | S&P 500 | TECH vs SPY |
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for TECH, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is CF Industries Holdings, Inc. (CF) (Basic Materials) with a 1Y correlation of -0.04, down from 0.08 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| CF Industries Holdings, Inc. | -0.04 | 0.05 | 0.08 | 64 | Basic Materials | |
| Phillips 66 | -0.02 | 0.12 | 0.13 | 93 | Energy | |
| Marathon Petroleum Corporation | 0.02 | 0.09 | 0.14 | 94 | Energy | |
| Royalty Pharma plc | 0.21 | 0.24 | 0.30 | 95 | Healthcare | |
| Corcept Therapeutics Incorporated | 0.24 | 0.28 | 0.32 | 66 | Healthcare |
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