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

ETF · Currency in CAD · Last updated Jun 24, 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

1 ETFs have low correlation with XETM.TO (below 0.3), 1 of which are negatively correlated. The least correlated is Purpose Cash Management Fund (MNY.TO) (Money Market) with a 1Y correlation of -0.07, roughly unchanged from -0.07 over 3 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankCategoryCompare
MNY.TO
Purpose Cash Management Fund-0.07-0.07—
100
Money MarketXETM.TO vs MNY.TO
VDY.TO
Vanguard FTSE Canadian High Dividend Yield Index E...0.350.350.35
98
DividendXETM.TO vs VDY.TO
ZCS.TO
BMO Short Corporate Bond Index ETF0.390.390.39
59
Canadian Government BondsXETM.TO vs ZCS.TO
XCLN.TO
iShares Global Clean Energy Index ETF0.490.490.49
75
Alternative Energy EquitiesXETM.TO vs XCLN.TO
ZSP.TO
BMO S&P 500 Index ETF0.550.550.55
72
S&P 500XETM.TO vs ZSP.TO
See all 11 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 -0.10, roughly unchanged from -0.10 over 5 years.

SymbolNameCorrelation 1YCorrelation 3YCorrelation 5YRisk / Return RankSector
ENB.TO
Enbridge Inc.-0.10-0.10-0.10
89
Energy
CNR.TO
Canadian National Railway Company0.210.210.21
67
Industrials
DML.TO
Denison Mines Corp.0.780.780.78
81
Energy

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Diversification Analysis

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