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
371 ETFs have low correlation with XLK (below 0.3), 97 of which are negatively correlated. The least correlated is United States Oil Fund LP (USO) (Oil & Gas) with a 1Y correlation of -0.24, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| United States Oil Fund LP | -0.24 | -0.06 | 0.03 | 66 | Oil & Gas | XLK vs USO | |
| Invesco DB Energy Fund | -0.24 | -0.06 | 0.05 | 71 | Oil & Gas | XLK vs DBE | |
| United States Brent Oil Fund LP | -0.23 | -0.05 | 0.04 | 65 | Oil & Gas | XLK vs BNO | |
| Defiance Oil Enhanced Options Income ETF | -0.23 | — | — | 56 | Derivative Income | XLK vs USOY | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.23 | — | — | 98 | Inflation-Protected Bonds | XLK vs IBIC |
To view more results, upgrade your current subscription plan.
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 -0.33, down from -0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Duke Energy Corporation | -0.33 | -0.21 | -0.03 | 52 | Utilities | |
| Altria Group, Inc. | -0.32 | -0.14 | -0.01 | 67 | Consumer Defensive | |
| Verizon Communications Inc. | -0.27 | -0.13 | 0.00 | 62 | Communication Services | |
| The Coca-Cola Company | -0.23 | -0.11 | 0.11 | 63 | Consumer Defensive | |
| Exxon Mobil Corporation | -0.20 | -0.05 | 0.09 | 85 | Energy |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements XLK
Add XLK to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with XLK