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 Banks | 327B | +24.30% | ||
| Financials | Other Life & Health Insurance | 70.55B | +17.31% | ||
| Financials | Other Banks | 253B | +45.01% | ||
| Technology | Other Semiconductors | 2,035B | +66.13% | ||
| Financials | Other Financial & Commodity Market Operators | 17.54B | +22.35% | ||
| Financials | Other Banks | 111B | +61.34% | ||
| Consumer Non-Cyclical | Other Non-Alcoholic Beverages | 369B | +23.74% | ||
| Financials | Other Banks | 193B | +29.27% | ||
| Industrials | Integrated Logistics Operators | 32.15B | +28.47% | ||
| Financials | Other Banks | 31.97B | +102.25% | ||
| Financials | Other Banks | 172B | +38.09% | ||
| Financials | Other Banks | 303B | +32.74% | ||
| Technology | Other Communications & Networking | 442B | +46.46% | ||
| Financials | Other Banks | 76.67B | +53.78% | ||
| Healthcare | Other Pharmaceuticals | 617B | +22.22% | ||
| Industrials | Testing & Measuring Equipment | 65.48B | +89.07% | ||
| Industrials | Security Services | 15.82B | +12.15% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 45.16B | -17.21% | ||
| Industrials | Railway Freight Operators | 165B | +19.77% | ||
| Utilities | Other Electric Utilities | 152B | +13.73% | ||
| Healthcare | Other Healthcare Facilities & Services | 25.75B | +33.82% | ||
| Industrials | Other Electrical Components & Equipment | 57.76B | +22.70% | ||
| Industrials | Other Air Freight & Logistics | 25.02B | +30.27% | ||
| Consumer Non-Cyclical | Other Tobacco | 292B | +18.16% | ||
| Financials | Other Property & Casualty Insurance | 7.64B | +20.59% | ||
| Financials | Wealth Management | 12.29B | +25.90% | ||
| Technology | Other Wireless Telecommunications Services | 69.92B | +6.81% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 68.68B | -8.01% | ||
| Energy | Other Oil & Gas Refining and Marketing | 674B | +36.28% | ||
| Financials | Other Banks | 22.14B | +3.74% | ||
| Basic Materials | Other Specialty Chemicals | 14.01B | +31.79% | ||
| Basic Materials | Other Commodity Chemicals | 122B | +17.21% | ||
| Consumer Non-Cyclical | Other Food Processing | 42.8B | -24.77% | ||
| Basic Materials | Integrated Mining | 160B | +19.84% | ||
| Healthcare | Other Pharmaceuticals | 125B | +9.03% | ||
| Energy | Other Oil & Gas Transportation Services | 86.28B | +17.80% | ||
| Industrials | Other Aerospace & Defense | 26.76B | +33.37% | ||
| Industrials | Other Construction & Engineering | 9.65B | +12.41% | ||
| Healthcare | Biopharmaceuticals | 23.37B | +15.55% | ||
| Industrials | Other Electrical Components & Equipment | 169B | +35.82% | ||
| Basic Materials | Other Specialty Chemicals | 6.07B | +22.19% | ||
| Financials | Other Banks | 17.4B | +29.42% | ||
| Real Estate | Other Real Estate Development & Operations | 27.43B | -19.00% | ||
| Healthcare | Other Pharmaceuticals | 218B | +23.12% | ||
| Technology | Enterprise Software | 431B | -26.90% | ||
| Technology | Electronic Component | 214B | +29.15% | ||
| Energy | Natural Gas Pipeline | 12.34B | +2.04% | ||
| Technology | Other Wireless Telecommunications Services | 30.56B | +9.90% | ||
| Utilities | Other Electric Utilities | 18.25B | +9.10% | ||
| Utilities | Other Electric Utilities | 53.92B | +4.15% | ||
| Healthcare | Other Pharmaceuticals | 267B | +6.28% | ||
| Real Estate | Other Specialized REITs | 66.24B | +16.26% | ||
| Technology | Other IT Services & Consulting | 26.04B | +20.30% | ||
| Healthcare | Other Pharmaceuticals | 1,019B | +6.37% | ||
| Industrials | Diversified Industrial Goods Wholesale | 109B | +31.32% | ||
| Basic Materials | Industrial Gas | 221B | +13.13% | ||
| Technology | Other Wireless Telecommunications Services | 11.61B | +12.90% | ||
| Real Estate | Healthcare REITs | 8.58B | +0.11% | ||
| Healthcare | Other Pharmaceuticals | 179B | +17.83% | ||
| Industrials | Diversified Industrial Goods Wholesale | 95.32B | +11.27% | ||
| Utilities | Other Electric Utilities | 11.63B | +8.18% | ||
| Consumer Non-Cyclical | Other Food Retail & Distribution | 34.86B | -5.92% | ||
| Healthcare | Other Managed Healthcare | 334B | +14.68% | ||
| Healthcare | Other Managed Healthcare | 83.8B | +12.54% | ||
| Technology | Other Integrated Telecommunications Services | 50.15B | +15.70% | ||
| Consumer Non-Cyclical | Other Food Processing | 12.52B | +18.83% | ||
News of the components
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