Looking to diversify beyond XLP? The ETFs below have the lowest correlation with XLP — 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 XLP.
Best Diversifiers for XLP
1518 ETFs have low correlation with XLP (below 0.3), 608 of which are negatively correlated. The least correlated is ProShares Ultra Semiconductors (USD) (Leveraged Equities) with a 1Y correlation of -0.39, down from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Ultra Semiconductors | -0.39 | -0.15 | 0.06 | 69 | Leveraged Equities, Semiconductors | XLP vs USD | |
| Pacer Data and Digital Revolution ETF | -0.37 | -0.09 | — | 60 | Technology Equities | XLP vs TRFK | |
| First Trust Bloomberg Artificial Intelligence ETF | -0.36 | — | — | 54 | Technology Equities | XLP vs FAI | |
| Columbia Select Technology ETF | -0.34 | -0.06 | 0.10 | 62 | Semiconductors, Technology Equities | XLP vs SEMI | |
| ProShares Ultra Technology | -0.34 | -0.05 | 0.17 | 54 | Leveraged Equities | XLP vs ROM |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLP, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLP and solid risk/return profiles. The least correlated is Credo Technology Group Holding Ltd (CRDO) (Technology) with a 1Y correlation of -0.34, down from -0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Credo Technology Group Holding Ltd | -0.35 | -0.15 | -0.04 | 81 | Technology | |
| NVIDIA Corporation | -0.34 | -0.16 | 0.03 | 66 | Technology | |
| CrowdStrike Holdings, Inc. | -0.31 | -0.09 | 0.02 | 82 | Technology | |
| Broadcom Inc. | -0.30 | -0.10 | 0.10 | 71 | Technology | |
| Micron Technology, Inc. | -0.27 | -0.12 | 0.03 | 99 | Technology |
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