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
296 ETFs have low correlation with XLB (below 0.3), 30 of which are negatively correlated. The least correlated is Invesco DB US Dollar Index Bullish Fund (UUP) (Currency) with a 1Y correlation of -0.34, roughly unchanged from -0.36 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB US Dollar Index Bullish Fund | -0.34 | -0.30 | -0.36 | 51 | Currency | XLB vs UUP | |
| ProShares Short Bitcoin ETF | -0.24 | -0.22 | -0.27 | 57 | Cryptocurrency | XLB vs BITI | |
| Invesco DB Energy Fund | -0.24 | -0.03 | 0.14 | 53 | Oil & Gas | XLB vs DBE | |
| Proshares Ultrashort Bitcoin ETF | -0.24 | -0.24 | -0.24 | 52 | Cryptocurrency, Leveraged Cryptocurrency | XLB vs SBIT | |
| ProShares UltraShort Yen | -0.21 | -0.13 | -0.10 | 72 | Leveraged Currency | XLB vs YCS |
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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 ConocoPhillips Company (COP) (Energy) with a 1Y correlation of 0.01, down from 0.31 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| ConocoPhillips Company | 0.01 | 0.19 | 0.31 | 66 | Energy | |
| Walmart Inc. | 0.02 | 0.16 | 0.24 | 71 | Consumer Defensive | |
| Altria Group, Inc. | 0.03 | 0.15 | 0.26 | 81 | Consumer Defensive | |
| Devon Energy Corporation | 0.05 | 0.27 | 0.40 | 72 | Energy | |
| AppLovin Corporation | 0.05 | 0.18 | 0.30 | 60 | Communication Services |
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