Looking to diversify beyond XLB? The ETFs below have the lowest correlation with XLB — 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 XLB.
Best Diversifiers for XLB
301 ETFs have low correlation with XLB (below 0.3), 32 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.23, down from -0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.23 | -0.12 | -0.09 | 61 | Leveraged Currency | XLB vs YCS | |
| Invesco DB Energy Fund | -0.22 | -0.00 | 0.16 | 71 | Oil & Gas | XLB vs DBE | |
| United States Oil Fund LP | -0.21 | 0.01 | 0.15 | 66 | Oil & Gas | XLB vs USO | |
| United States Brent Oil Fund LP | -0.20 | 0.01 | 0.14 | 65 | Oil & Gas | XLB vs BNO | |
| United States Gasoline Fund LP | -0.20 | -0.00 | 0.13 | 69 | Oil & Gas | XLB vs UGA |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLB, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLB and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.00, down from 0.28 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.00 | 0.19 | 0.28 | 69 | Consumer Defensive | |
| Walmart Inc. | 0.04 | 0.17 | 0.25 | 63 | Consumer Defensive | |
| ConocoPhillips Company | 0.05 | 0.22 | 0.32 | 76 | Energy | |
| Energy Transfer LP | 0.05 | 0.27 | 0.38 | 69 | Energy | |
| Palo Alto Networks, Inc. | 0.06 | 0.18 | 0.25 | 67 | Technology |
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