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
1360 ETFs have low correlation with XLP (below 0.3), 391 of which are negatively correlated. The least correlated is ProShares Ultra Semiconductors (USD) (Leveraged Equities) with a 1Y correlation of -0.33, down from 0.06 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Ultra Semiconductors | -0.33 | -0.12 | 0.06 | 82 | Leveraged Equities, Semiconductors | XLP vs USD | |
| First Trust Bloomberg Artificial Intelligence ETF | -0.32 | — | — | 60 | Technology Equities | XLP vs FAI | |
| Pacer Data and Digital Revolution ETF | -0.31 | -0.05 | — | 76 | Technology Equities | XLP vs TRFK | |
| Fidelity MSCI Information Technology Index ETF | -0.29 | -0.02 | 0.19 | 59 | Technology Equities | XLP vs FTEC | |
| State Street Technology Select Sector SPDR ETF | -0.29 | -0.01 | 0.20 | 66 | Technology Equities | XLP vs XLK |
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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 -0.35, down from 0.04 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| NVIDIA Corporation | -0.35 | -0.15 | 0.04 | 70 | Technology | |
| Credo Technology Group Holding Ltd | -0.31 | -0.14 | -0.03 | 86 | Technology | |
| CrowdStrike Holdings, Inc. | -0.30 | -0.08 | 0.02 | 66 | Technology | |
| Broadcom Inc. | -0.26 | -0.07 | 0.11 | 71 | Technology | |
| Marvell Technology, Inc. | -0.21 | -0.06 | 0.08 | 96 | Technology |
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Build a portfolio that complements XLP
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