Looking to diversify beyond XLE? The ETFs below have the lowest correlation with XLE — 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 XLE.
Best Diversifiers for XLE
1570 ETFs have low correlation with XLE (below 0.3), 1083 of which are negatively correlated. The least correlated is Invesco BulletShares 2032 Municipal Bond ETF (BSMW) (Municipal Bonds) with a 1Y correlation of -0.30, down from -0.10 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco BulletShares 2032 Municipal Bond ETF | -0.30 | -0.10 | — | 64 | Municipal Bonds | XLE vs BSMW | |
| BNY Mellon Ultra Short Income ETF | -0.30 | -0.14 | — | 99 | Ultrashort Bond | XLE vs BKUI | |
| Avantis Credit ETF | -0.29 | — | — | 52 | Global Bonds | XLE vs AVGB | |
| Vanguard Short Duration Bond ETF Shares | -0.27 | -0.22 | -0.22 | 85 | Short-Term Bond | XLE vs VSDB | |
| State Street Ultra Short Term Bond ETF | -0.26 | -0.09 | -0.06 | 99 | Ultrashort Bond | XLE vs ULST |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLE, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLE and solid risk/return profiles. The least correlated is United Airlines Holdings, Inc. (UAL) (Industrials) with a 1Y correlation of -0.18, down from 0.17 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| United Airlines Holdings, Inc. | -0.18 | 0.03 | 0.17 | 61 | Industrials | |
| General Electric Company | -0.15 | 0.11 | 0.28 | 69 | Industrials | |
| Amazon.com, Inc | -0.14 | 0.00 | 0.09 | 62 | Consumer Cyclical | |
| Broadcom Inc. | -0.14 | 0.01 | 0.14 | 76 | Technology | |
| Lam Research Corporation | -0.14 | 0.04 | 0.16 | 98 | Technology |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements XLE
Add XLE to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with XLE