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
303 ETFs have low correlation with XLI (below 0.3), 75 of which are negatively correlated. The least correlated is ProShares Short Bitcoin ETF (BITI) (Cryptocurrency) with a 1Y correlation of -0.32, roughly unchanged from -0.29 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Short Bitcoin ETF | -0.32 | -0.29 | — | 55 | Cryptocurrency | XLI vs BITI | |
| WisdomTree Bloomberg U.S. Dollar Bullish Fund | -0.30 | -0.27 | -0.33 | 51 | Currency | XLI vs USDU | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.30 | — | — | 62 | Inverse Equities, Leveraged Equities | XLI vs MSTZ | |
| Alpha Architect Tail Risk ETF | -0.30 | -0.07 | — | 55 | Options Trading | XLI vs CAOS | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.26 | — | — | 73 | Derivative Income | XLI vs WNTR |
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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 -0.13, down from 0.22 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.13 | 0.08 | 0.22 | 77 | Consumer Defensive | |
| Chevron Corporation | -0.10 | 0.16 | 0.31 | 79 | Energy | |
| Consolidated Edison, Inc. | -0.08 | 0.09 | 0.21 | 68 | Utilities | |
| Exxon Mobil Corporation | -0.08 | 0.15 | 0.29 | 86 | Energy | |
| Devon Energy Corporation | -0.07 | 0.21 | 0.34 | 77 | Energy |
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