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
1509 ETFs have low correlation with XLP (below 0.3), 263 of which are negatively correlated. The least correlated is YieldMax NVDA Option Income Strategy ETF (NVDY) (Derivative Income) with a 1Y correlation of -0.30, down from -0.13 over 3 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| YieldMax NVDA Option Income Strategy ETF | -0.30 | -0.13 | — | 56 | Derivative Income, Options Trading | XLP vs NVDY | |
| REX NVDA Growth & Income ETF | -0.30 | — | — | 57 | Derivative Income | XLP vs NVII | |
| ProShares Ultra Semiconductors | -0.29 | -0.10 | 0.09 | 89 | Leveraged Equities, Semiconductors | XLP vs USD | |
| Direxion Daily AI and Big Data Bull 2X Shares | -0.25 | — | — | 51 | Leveraged Equities | XLP vs AIBU | |
| Alger AI Enablers & Adopters ETF | -0.25 | — | — | 69 | Technology Equities | XLP vs ALAI |
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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 NVIDIA Corporation (NVDA) (Technology) with a 1Y correlation of -0.30, down from 0.05 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| NVIDIA Corporation | -0.30 | -0.13 | 0.05 | 80 | Technology | |
| Credo Technology Group Holding Ltd | -0.28 | -0.13 | -0.02 | 85 | Technology | |
| CrowdStrike Holdings, Inc. | -0.27 | -0.07 | 0.02 | 72 | Technology | |
| Oracle Corporation | -0.24 | 0.02 | 0.17 | 61 | Technology | |
| Broadcom Inc. | -0.20 | -0.05 | 0.13 | 76 | Technology |
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Build a portfolio that complements XLP
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