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iShares S&P/TSX Energy Transition Materials Index ETF (XETM.TO) Diversifiers

ETF · Currency in CAD · Last updated Jul 16, 2026

The iShares S&P/TSX Energy Transition Materials Index ETF provides exposure to Canadian and global companies engaged in producing or exploring materials essential for enabling the global energy transition, including copper, lithium, cobalt, nickel, aluminum, and other critical minerals.

Looking to diversify beyond XETM.TO? The ETFs below have the lowest correlation with XETM.TO — 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 XETM.TO.

Best Diversifiers for XETM.TO

4 ETFs have low correlation with XETM.TO (below 0.3), 2 of which are negatively correlated. The least correlated is Global X Equal Weight Canadian Pipelines Index ETF (PPLN.TO) (Energy Equities) with a 1Y correlation of -0.17, roughly unchanged from -0.17 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
PPLN.TO
Global X Equal Weight Canadian Pipelines Index ETF-0.17-0.17-0.17
90
Energy Equities, Equal WeightXETM.TO vs PPLN.TO
XEG.TO
iShares S&P/TSX Capped Energy Index ETF-0.06-0.06-0.06
78
Energy Equities, Canada EquitiesXETM.TO vs XEG.TO
XDIV.TO
iShares Core MSCI Canadian Quality Dividend Index ...0.240.240.24
98
Dividend, Large Cap Value EquitiesXETM.TO vs XDIV.TO
XEI.TO
iShares S&P/TSX Composite High Dividend Index ETF0.250.250.25
98
Canada EquitiesXETM.TO vs XEI.TO
XCV.TO
iShares Canadian Value Index ETF0.360.360.36
98
Canada EquitiesXETM.TO vs XCV.TO
See all 18 diversifiers for XETM.TO

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Low-Correlation Stock Ideas

If you're looking for individual stocks that move independently from XETM.TO, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XETM.TO and solid risk/return profiles. The least correlated is Enbridge Inc. (ENB.TO) (Energy) with a 1Y correlation of -0.14, roughly unchanged from -0.14 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankSector
ENB.TO
Enbridge Inc.-0.14-0.14-0.14
91
Energy
DML.TO
Denison Mines Corp.0.750.750.75
78
Energy

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Diversification Analysis

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