Looking to diversify beyond XLF? The ETFs below have the lowest correlation with XLF — 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 XLF.
Best Diversifiers for XLF
520 ETFs have low correlation with XLF (below 0.3), 54 of which are negatively correlated.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| T-REX 2X Inverse MSTR Daily Target ETF | -0.25 | — | — | 70 | Inverse Equities, Leveraged Equities | XLF vs MSTZ | |
| Invesco DB Energy Fund | -0.24 | -0.10 | 0.09 | 57 | Oil & Gas | XLF vs DBE | |
| ProShares Short Bitcoin ETF | -0.23 | -0.26 | — | 52 | Cryptocurrency | XLF vs BITI | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.22 | -0.27 | -0.27 | 73 | Derivative Income | XLF vs WNTR | |
| iShares S&P GSCI Commodity-Indexed Trust | -0.18 | -0.04 | 0.13 | 54 | Commodities | XLF vs GSG |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLF, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLF and solid risk/return profiles. The least correlated is Petróleo Brasileiro S.A. - Petrobras (PBR) (Energy) with a 1Y correlation of -0.07, down from 0.19 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Petróleo Brasileiro S.A. - Petrobras | -0.07 | 0.12 | 0.19 | 80 | Energy | |
| Altria Group, Inc. | -0.06 | 0.19 | 0.28 | 80 | Consumer Defensive | |
| BP p.l.c. | -0.05 | 0.12 | 0.31 | 77 | Energy | |
| Occidental Petroleum Corporation | -0.05 | 0.15 | 0.29 | 67 | Energy | |
| Devon Energy Corporation | -0.04 | 0.19 | 0.35 | 76 | Energy |
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