Looking to diversify beyond XLU? The ETFs below have historically moved differently from XLU, 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 XLU
1606 ETFs have low correlation with XLU (below 0.3), 79 of which are negatively correlated. The least correlated is FolioBeyond Alternative Income and Interest Rate Hedge ETF (RISR) (Nontraditional Bonds) with a 1Y correlation of -0.20, roughly unchanged from -0.12 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| FolioBeyond Alternative Income and Interest Rate H... | -0.20 | -0.15 | -0.12 | 51 | Nontraditional Bonds | XLU vs RISR | |
| Fidelity Cloud Computing ETF | -0.13 | 0.04 | — | 56 | Technology Equities, Cloud Computing | XLU vs FCLD | |
| ProShares UltraShort Yen | -0.12 | -0.16 | -0.13 | 59 | Leveraged Currency | XLU vs YCS | |
| ProShares Short Bitcoin ETF | -0.11 | -0.12 | — | 51 | Cryptocurrency | XLU vs BITI | |
| Invesco DB Energy Fund | -0.10 | -0.04 | 0.03 | 66 | Oil & Gas | XLU vs DBE |
To view more results, upgrade your current subscription plan.
Low-Correlation Stock Ideas
The table shows companies with at least $1B in market capitalization, historical correlation data for XLU, 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 Palo Alto Networks, Inc. (PANW) (Technology) with a 1Y correlation of -0.13, down from 0.08 over 5 years.
How candidates are selected| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Palo Alto Networks, Inc. | -0.13 | 0.00 | 0.08 | 90 | Technology | |
| UiPath Inc. | -0.13 | 0.09 | 0.11 | 54 | Technology | |
| CrowdStrike Holdings, Inc. | -0.13 | -0.02 | 0.06 | 83 | Technology | |
| Fortinet, Inc. | -0.08 | 0.06 | 0.14 | 82 | Technology | |
| Block, Inc. | -0.08 | 0.14 | 0.18 | 51 | Technology |
To view more results, upgrade your current subscription plan.
Build a portfolio that complements XLU
Add XLU to the Diversification Analyzer to see how it overlaps with your other holdings and which assets balance it best.
Analyze a portfolio with XLU