Looking to diversify beyond XLF? The ETFs below have historically moved differently from XLF, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for XLF
519 ETFs have low correlation with XLF (below 0.3), 65 of which are negatively correlated. The least correlated is Invesco DB Energy Fund (DBE) (Oil & Gas) with a 1Y correlation of -0.30, down from 0.07 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| Invesco DB Energy Fund | -0.30 | -0.13 | 0.07 | 54 | Oil & Gas | XLF vs DBE | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.23 | -0.07 | 0.12 | 51 | Commodities | XLF vs GSG | |
| DoubleLine Commodity Strategy ETF | -0.22 | — | — | 53 | Commodities | XLF vs DCMT | |
| YieldMax MSTR Short Option Income Strategy ETF | -0.22 | -0.27 | -0.27 | 58 | Derivative Income | XLF vs WNTR | |
| Invesco DB Commodity Index Tracking Fund | -0.21 | -0.06 | 0.12 | 59 | Commodities | XLF vs DBC |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for XLF, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Petróleo Brasileiro S.A. - Petrobras (PBR) (Energy) with a 1Y correlation of -0.12, down from 0.17 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Petróleo Brasileiro S.A. - Petrobras | -0.12 | 0.10 | 0.17 | 79 | Energy | |
| Occidental Petroleum Corporation | -0.11 | 0.13 | 0.27 | 65 | Energy | |
| BP p.l.c. | -0.09 | 0.10 | 0.29 | 71 | Energy | |
| Devon Energy Corporation | -0.09 | 0.17 | 0.33 | 71 | Energy | |
| Chevron Corporation | -0.08 | 0.18 | 0.33 | 72 | Energy |
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