Looking to diversify beyond XLC? The ETFs below have the lowest correlation with XLC — 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 XLC.
Best Diversifiers for XLC
304 ETFs have low correlation with XLC (below 0.3), 27 of which are negatively correlated. The least correlated is ProShares UltraShort Yen (YCS) (Leveraged Currency) with a 1Y correlation of -0.25, down from -0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares UltraShort Yen | -0.25 | -0.07 | -0.05 | 63 | Leveraged Currency | XLC vs YCS | |
| United States Gasoline Fund LP | -0.17 | -0.04 | 0.06 | 55 | Oil & Gas | XLC vs UGA | |
| iShares 0-3 Month Treasury Bond ETF | -0.13 | -0.02 | 0.03 | 100 | Ultrashort Bond | XLC vs SGOV | |
| SPDR Bloomberg 1-3 Month T-Bill ETF | -0.13 | -0.06 | 0.00 | 100 | Government Bonds, Ultrashort Bond | XLC vs BIL | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.10 | — | — | 98 | Inflation-Protected Bonds | XLC vs IBIC |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLC, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLC and solid risk/return profiles. The least correlated is Exxon Mobil Corporation (XOM) (Energy) with a 1Y correlation of -0.15, down from 0.14 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Exxon Mobil Corporation | -0.15 | 0.02 | 0.14 | 72 | Energy | |
| Chevron Corporation | -0.14 | 0.02 | 0.13 | 70 | Energy | |
| BP p.l.c. | -0.13 | 0.06 | 0.15 | 77 | Energy | |
| ConocoPhillips Company | -0.12 | 0.04 | 0.14 | 65 | Energy | |
| Altria Group, Inc. | -0.10 | 0.04 | 0.12 | 72 | Consumer Defensive |
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