Looking to diversify beyond XLY? The ETFs below have the lowest correlation with XLY — 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 XLY.
Best Diversifiers for XLY
293 ETFs have low correlation with XLY (below 0.3), 72 of which are negatively correlated. The least correlated is ProShares Short Bitcoin ETF (BITI) (Cryptocurrency) with a 1Y correlation of -0.39, roughly unchanged from -0.39 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| ProShares Short Bitcoin ETF | -0.39 | -0.36 | -0.39 | 52 | Cryptocurrency | XLY vs BITI | |
| T-REX 2X Inverse MSTR Daily Target ETF | -0.39 | — | — | 70 | Inverse Equities, Leveraged Equities | XLY vs MSTZ | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.37 | — | — | 73 | Derivative Income | XLY vs WNTR | |
| Invesco DB Energy Fund | -0.31 | -0.10 | 0.03 | 57 | Oil & Gas | XLY vs DBE | |
| iShares GSCI Commodity Dynamic Roll Strategy ETF | -0.24 | -0.05 | 0.06 | 52 | Commodities | XLY vs COMT |
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Low-Correlation Stock Ideas
If you're looking for individual stocks that move independently from XLY, these are worth exploring. The table shows U.S. companies ($1B+ market cap) with low correlation to XLY and solid risk/return profiles. The least correlated is Occidental Petroleum Corporation (OXY) (Energy) with a 1Y correlation of -0.27, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Occidental Petroleum Corporation | -0.27 | 0.01 | 0.13 | 67 | Energy | |
| Chevron Corporation | -0.27 | 0.02 | 0.13 | 74 | Energy | |
| Exxon Mobil Corporation | -0.23 | -0.01 | 0.12 | 78 | Energy | |
| Enterprise Products Partners L.P. | -0.22 | 0.10 | 0.22 | 87 | Energy | |
| ConocoPhillips Company | -0.22 | 0.01 | 0.12 | 69 | Energy |
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