Investment Themes
Low volatility can be measured in two ways. The first is standard deviation, which measures the volatility of each stock in isolation, and the second is beta, which measures the volatility and correlation of a stock relative to the market as a whole. The market has a beta of 1, so a stock with a beta below 1 is considered less volatile than the market, and vice versa for a stock with a beta above 1.
Below are the top-rated low-volatility stocks based on a volatility composite. Many managers have adopted this strategy, which consists of beating the markets in contractionary (bearish) phases and rising in line with the market in expansionary (bullish) phases. This may seem counter-intuitive to many investors, but stocks that are less volatile than their peers have historically produced comparable or superior returns. This means that, on a risk-adjusted basis, low-volatility stocks have been superior investments.
Our selection
| Financials | Other Life & Health Insurance | 70.43B | +17.65% | ||
| Financials | Other Banks | 246B | +42.44% | ||
| Financials | Other Banks | 156B | +32.35% | ||
| Financials | Other Banks | 316B | +21.69% | ||
| Technology | Other Semiconductors | 2,069B | +63.87% | ||
| Financials | Other Banks | 163B | +32.43% | ||
| Financials | Other Banks | 102B | +47.52% | ||
| Consumer Non-Cyclical | Other Non-Alcoholic Beverages | 379B | +28.44% | ||
| Financials | Other Banks | 188B | +26.92% | ||
| Industrials | Integrated Logistics Operators | 32.66B | +33.49% | ||
| Financials | Other Banks | 32.21B | +112.89% | ||
| Financials | Other Banks | 306B | +40.02% | ||
| Technology | Other Communications & Networking | 467B | +49.73% | ||
| Financials | Other Banks | 71.49B | +45.59% | ||
| Industrials | Testing & Measuring Equipment | 65.16B | +85.89% | ||
| Healthcare | Other Pharmaceuticals | 630B | +27.44% | ||
| Industrials | Security Services | 16.12B | +15.81% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 47.55B | -14.53% | ||
| Industrials | Railway Freight Operators | 165B | +21.72% | ||
| Utilities | Other Electric Utilities | 154B | +17.41% | ||
| Financials | Other Property & Casualty Insurance | 7.64B | +21.27% | ||
| Healthcare | Other Healthcare Facilities & Services | 25.49B | +34.06% | ||
| Industrials | Other Electrical Components & Equipment | 56.99B | +21.71% | ||
| Industrials | Other Air Freight & Logistics | 25.12B | +29.80% | ||
| Basic Materials | Other Specialty Chemicals | 14.13B | +35.39% | ||
| Consumer Non-Cyclical | Other Tobacco | 314B | +25.94% | ||
| Financials | Wealth Management | 12.57B | +28.02% | ||
| Technology | Other Wireless Telecommunications Services | 69.56B | +7.33% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 69.93B | -5.00% | ||
| Financials | Other Banks | 17.39B | +35.03% | ||
| Energy | Other Oil & Gas Refining and Marketing | 695B | +43.05% | ||
| Basic Materials | Other Commodity Chemicals | 121B | +15.79% | ||
| Consumer Non-Cyclical | Other Food Processing | 42.28B | -22.77% | ||
| Healthcare | Other Pharmaceuticals | 121B | +6.75% | ||
| Energy | Other Oil & Gas Transportation Services | 88.89B | +23.39% | ||
| Industrials | Other Aerospace & Defense | 25.37B | +23.52% | ||
| Basic Materials | Other Specialty Chemicals | 6.28B | +26.79% | ||
| Industrials | Other Electrical Components & Equipment | 167B | +33.96% | ||
| Real Estate | Other Real Estate Development & Operations | 27.38B | -19.57% | ||
| Technology | Other Wireless Telecommunications Services | 11.76B | +11.98% | ||
| Financials | Other Banks | 21.71B | +3.30% | ||
| Basic Materials | Integrated Mining | 160B | +19.19% | ||
| Technology | Electronic Component | 215B | +27.56% | ||
| Technology | Other Wireless Telecommunications Services | 29.61B | +6.07% | ||
| Industrials | Other Construction & Engineering | 9.52B | +12.93% | ||
| Utilities | Other Electric Utilities | 18.67B | +12.43% | ||
| Healthcare | Biopharmaceuticals | 22.86B | +12.75% | ||
| Utilities | Other Electric Utilities | 54.21B | +6.59% | ||
| Healthcare | Other Pharmaceuticals | 272B | +9.45% | ||
| Industrials | Diversified Industrial Goods Wholesale | 106B | +29.81% | ||
| Real Estate | Other Specialized REITs | 66.32B | +16.45% | ||
| Technology | Other IT Services & Consulting | 27.43B | +24.59% | ||
| Healthcare | Other Pharmaceuticals | 1,051B | +10.04% | ||
| Basic Materials | Industrial Gas | 223B | +14.30% | ||
| Healthcare | Other Managed Healthcare | 89.5B | +20.41% | ||
| Technology | Enterprise Software | 429B | -29.51% | ||
| Technology | Other Integrated Telecommunications Services | 48.87B | +13.30% | ||
| Energy | Natural Gas Pipeline | 12.65B | +4.96% | ||
| Healthcare | Other Pharmaceuticals | 187B | +22.56% | ||
| Industrials | Diversified Industrial Goods Wholesale | 94.05B | +11.22% | ||
| Healthcare | Other Pharmaceuticals | 489B | +23.03% | ||
| Utilities | Other Electric Utilities | 11.99B | +12.64% | ||
| Technology | Wireless Telecom | 73.26B | +12.24% | ||
| Healthcare | Other Medical Equipment, Supplies & Distribution | 61.8B | -3.76% | ||
| Healthcare | Other Medical Equipment, Supplies & Distribution | 12.59B | +29.67% | ||
| Consumer Non-Cyclical | Other Food Retail & Distribution | 36.4B | +0.13% | ||
| Healthcare | Other Managed Healthcare | 340B | +14.66% | ||
News of the components
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