Looking to diversify beyond XLK? The ETFs below have historically moved differently from XLK, which may reduce portfolio volatility when combined in a suitable allocation. The stock ideas table highlights individual companies with the same low-correlation characteristics. Correlation can change and does not guarantee that one asset will rise when another falls.
Best Diversifiers for XLK
432 ETFs have low correlation with XLK (below 0.3), 108 of which are negatively correlated.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| YieldMax MSTR Short Option Income Strategy ETF | -0.43 | — | — | 63 | Derivative Income | XLK vs WNTR | |
| iShares Core High Dividend ETF | -0.26 | 0.01 | 0.26 | 88 | Dividend, Large Cap Value Equities | XLK vs HDV | |
| First Trust Morningstar Dividend Leaders Index Fun... | -0.21 | 0.07 | 0.24 | 91 | Large Cap Value Equities, Dividend | XLK vs FDL | |
| FT Vest DJIA Dogs 10 Target Income ETF | -0.21 | 0.08 | 0.11 | 66 | Derivative Income | XLK vs DOGG | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.20 | -0.09 | -0.09 | 98 | Inflation-Protected Bonds | XLK vs IBIC |
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Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for XLK, and a Risk / Return Rank of 50 or higher. Treat them as research candidates rather than evidence that they will offset a future decline. The least correlated is Altria Group, Inc. (MO) (Consumer Defensive) with a 1Y correlation of -0.41, down from -0.05 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Altria Group, Inc. | -0.41 | -0.19 | -0.05 | 64 | Consumer Defensive | |
| Chubb Limited | -0.40 | -0.13 | 0.08 | 86 | Financial Services | |
| The Coca-Cola Company | -0.36 | -0.16 | 0.06 | 86 | Consumer Defensive | |
| Colgate-Palmolive Company | -0.35 | -0.18 | -0.01 | 59 | Consumer Defensive | |
| Verizon Communications Inc. | -0.33 | -0.17 | -0.02 | 63 | Communication Services |
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