Looking to diversify beyond XLI? The ETFs below have the lowest correlation with XLI — 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 XLI.
Best Diversifiers for XLI
253 ETFs have low correlation with XLI (below 0.3), 37 of which are negatively correlated.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| YieldMax Short MSTR Option Income Strategy ETF | -0.26 | — | — | 52 | Derivative Income | XLI vs WNTR | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.24 | — | — | 98 | Inflation-Protected Bonds | XLI vs IBIC | |
| Invesco DB US Dollar Index Bullish Fund | -0.22 | -0.20 | -0.26 | 54 | Currency | XLI vs UUP | |
| United States Gasoline Fund LP | -0.21 | -0.04 | 0.09 | 69 | Oil & Gas | XLI vs UGA | |
| WisdomTree Floating Rate Treasury Fund | -0.21 | -0.06 | -0.03 | 100 | Government Bonds, Ultrashort Bond | XLI vs USFR |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLI, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLI and solid risk/return profiles. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.12, down from 0.23 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.12 | 0.09 | 0.23 | 78 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.05 | 0.16 | 0.30 | 73 | Energy | |
| Chevron Corporation | -0.05 | 0.19 | 0.32 | 66 | Energy | |
| Devon Energy Corporation | -0.04 | 0.23 | 0.35 | 66 | Energy | |
| Consolidated Edison, Inc. | -0.04 | 0.10 | 0.21 | 73 | Utilities |
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