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
1489 ETFs have low correlation with XLE (below 0.3), 1087 of which are negatively correlated.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Avantis Credit ETF | -0.34 | — | — | 54 | Global Bonds | XLE vs AVGB | |
| John Hancock Mortgage Backed Securities ETF | -0.31 | -0.12 | — | 54 | Intermediate Core-Plus Bond | XLE vs JHMB | |
| BNY Mellon Ultra Short Income ETF | -0.29 | -0.17 | — | 99 | Ultrashort Bond | XLE vs BKUI | |
| Vanguard Short Duration Bond ETF Shares | -0.29 | — | — | 90 | Short-Term Bond | XLE vs VSDB | |
| Invesco BulletShares 2032 Municipal Bond ETF | -0.29 | -0.11 | — | 74 | Municipal Bonds | XLE vs BSMW |
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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 -0.22, down from 0.15 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| United Airlines Holdings, Inc. | -0.22 | 0.00 | 0.15 | 67 | Industrials | |
| General Electric Company | -0.19 | 0.06 | 0.25 | 71 | Industrials | |
| The Bank of Nova Scotia | -0.17 | 0.09 | 0.30 | 97 | Financial Services | |
| Alphabet Inc. Class A | -0.17 | -0.00 | 0.10 | 96 | Communication Services | |
| JetBlue Airways Corporation | -0.16 | 0.02 | 0.16 | 59 | Industrials |
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