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
247 ETFs have low correlation with XLB (below 0.3), 17 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.24, down from -0.09 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.24 | -0.13 | -0.09 | 63 | Leveraged Currency | XLB vs YCS | |
| United States Gasoline Fund LP | -0.19 | -0.03 | 0.12 | 55 | Oil & Gas | XLB vs UGA | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.13 | — | — | 98 | Inflation-Protected Bonds | XLB vs IBIC | |
| WisdomTree Floating Rate Treasury Fund | -0.12 | -0.03 | -0.03 | 100 | Government Bonds, Ultrashort Bond | XLB vs USFR | |
| iShares Enhanced Short-Term Bond Active ETF | -0.10 | — | — | 99 | Ultrashort Bond | XLB vs CSHP |
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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 0.02, down from 0.27 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | 0.02 | 0.16 | 0.27 | 72 | Consumer Defensive | |
| ConocoPhillips Company | 0.03 | 0.19 | 0.32 | 65 | Energy | |
| Walmart Inc. | 0.03 | 0.16 | 0.24 | 69 | Consumer Defensive | |
| Palo Alto Networks, Inc. | 0.03 | 0.17 | 0.25 | 69 | Technology | |
| Energy Transfer LP | 0.06 | 0.26 | 0.38 | 72 | Energy |
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