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
400 ETFs have low correlation with XLK (below 0.3), 86 of which are negatively correlated. The least correlated is T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) (Inverse Equities) with a 1Y correlation of -0.44, roughly unchanged from -0.43 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| T-REX 2X Inverse MSTR Daily Target ETF | -0.44 | -0.43 | -0.43 | 65 | Inverse Equities, Leveraged Equities | XLK vs MSTZ | |
| ProShares Short Bitcoin ETF | -0.43 | -0.33 | -0.36 | 53 | Cryptocurrency | XLK vs BITI | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.40 | — | — | 70 | Derivative Income | XLK vs WNTR | |
| iShares Core High Dividend ETF | -0.23 | 0.03 | 0.27 | 74 | Dividend, Large Cap Value Equities | XLK vs HDV | |
| FT Vest DJIA Dogs 10 Target Income ETF | -0.19 | 0.10 | 0.12 | 51 | Derivative Income | XLK vs DOGG |
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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 -0.41, down from -0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Duke Energy Corporation | -0.41 | -0.25 | -0.06 | 65 | Utilities | |
| Altria Group, Inc. | -0.39 | -0.18 | -0.03 | 78 | Consumer Defensive | |
| Chubb Limited | -0.38 | -0.12 | 0.09 | 83 | Financial Services | |
| The Coca-Cola Company | -0.34 | -0.16 | 0.07 | 82 | Consumer Defensive | |
| Verizon Communications Inc. | -0.33 | -0.16 | -0.01 | 57 | Communication Services |
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