Looking to diversify beyond XLK? The ETFs below have the lowest correlation with XLK — 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 XLK.
Best Diversifiers for XLK
311 ETFs have low correlation with XLK (below 0.3), 47 of which are negatively correlated.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| iShares iBonds Oct 2026 Term TIPS ETF | -0.19 | — | — | 98 | Inflation-Protected Bonds | XLK vs IBIC | |
| Brookstone Ultra-Short Bond ETF | -0.18 | — | — | 98 | Ultrashort Bond | XLK vs BAMU | |
| iShares iBonds Oct 2027 Term TIPS ETF | -0.17 | — | — | 95 | Inflation-Protected Bonds | XLK vs IBID | |
| United States Gasoline Fund LP | -0.16 | -0.03 | 0.04 | 55 | Oil & Gas | XLK vs UGA | |
| iShares Core High Dividend ETF | -0.16 | 0.06 | 0.30 | 70 | Dividend, Large Cap Value Equities | XLK vs HDV |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLK, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLK and solid risk/return profiles. The least correlated is Duke Energy Corporation (DUK) (Utilities) with a 1Y correlation of -0.37, down from -0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Duke Energy Corporation | -0.37 | -0.22 | -0.05 | 62 | Utilities | |
| Altria Group, Inc. | -0.35 | -0.17 | -0.02 | 72 | Consumer Defensive | |
| The Coca-Cola Company | -0.28 | -0.13 | 0.09 | 74 | Consumer Defensive | |
| Chubb Limited | -0.28 | -0.08 | 0.09 | 69 | Financial Services | |
| The Southern Company | -0.28 | -0.18 | 0.00 | 55 | Utilities |
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