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
321 ETFs have low correlation with XLY (below 0.3), 68 of which are negatively correlated. The least correlated is United States Oil Fund LP (USO) (Oil & Gas) with a 1Y correlation of -0.30, down from 0.03 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| United States Oil Fund LP | -0.30 | -0.09 | 0.03 | 66 | Oil & Gas | XLY vs USO | |
| Invesco DB Energy Fund | -0.30 | -0.09 | 0.04 | 71 | Oil & Gas | XLY vs DBE | |
| Defiance Oil Enhanced Options Income ETF | -0.29 | — | — | 56 | Derivative Income | XLY vs USOY | |
| United States Brent Oil Fund LP | -0.28 | -0.08 | 0.03 | 65 | Oil & Gas | XLY vs BNO | |
| ProShares K-1 Free Crude Oil Strategy ETF | -0.27 | -0.06 | 0.05 | 55 | Oil & Gas | XLY vs OILK |
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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 Exxon Mobil Corporation (XOM) (Energy) with a 1Y correlation of -0.17, down from 0.13 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Exxon Mobil Corporation | -0.17 | 0.01 | 0.13 | 85 | Energy | |
| Chevron Corporation | -0.16 | 0.03 | 0.13 | 83 | Energy | |
| Altria Group, Inc. | -0.15 | 0.02 | 0.09 | 69 | Consumer Defensive | |
| ConocoPhillips Company | -0.12 | 0.05 | 0.14 | 76 | Energy | |
| BP p.l.c. | -0.12 | 0.09 | 0.17 | 87 | Energy |
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