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
254 ETFs have low correlation with XLY (below 0.3), 42 of which are negatively correlated. The least correlated is T-REX 2X Inverse MSTR Daily Target ETF (MSTZ) (Inverse Equities) with a 1Y correlation of -0.37, roughly unchanged from -0.41 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Category | Compare |
|---|---|---|---|---|---|---|---|
| T-REX 2X Inverse MSTR Daily Target ETF | -0.37 | -0.41 | -0.41 | 62 | Inverse Equities, Leveraged Equities | XLY vs MSTZ | |
| YieldMax Short MSTR Option Income Strategy ETF | -0.35 | -0.41 | -0.41 | 63 | Derivative Income | XLY vs WNTR | |
| ProShares UltraShort Yen | -0.23 | -0.08 | -0.05 | 73 | Leveraged Currency | XLY vs YCS | |
| United States Gasoline Fund LP | -0.23 | -0.06 | 0.03 | 69 | Oil & Gas | XLY vs UGA | |
| iShares iBonds Oct 2026 Term TIPS ETF | -0.21 | — | — | 98 | Inflation-Protected Bonds | XLY vs IBIC |
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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 Chevron Corporation (CVX) (Energy) with a 1Y correlation of -0.21, down from 0.12 over 5 years.
| Symbol | Name | Correlation 1Y | Correlation 3Y | Correlation 5Y | Risk / Return Rank | Sector |
|---|---|---|---|---|---|---|
| Chevron Corporation | -0.21 | 0.02 | 0.12 | 72 | Energy | |
| Exxon Mobil Corporation | -0.20 | 0.00 | 0.12 | 75 | Energy | |
| Altria Group, Inc. | -0.18 | 0.01 | 0.09 | 78 | Consumer Defensive | |
| ConocoPhillips Company | -0.17 | 0.03 | 0.13 | 66 | Energy | |
| Enterprise Products Partners L.P. | -0.16 | 0.11 | 0.22 | 85 | Energy |
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