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 | 240B | +34.78% | ||
| Financials | Other Banks | 157B | +25.59% | ||
| Technology | Other Semiconductors | 1,814B | +45.81% | ||
| Financials | Other Banks | 97.81B | +40.94% | ||
| Financials | Other Banks | 310B | +33.18% | ||
| Consumer Non-Cyclical | Other Non-Alcoholic Beverages | 408B | +37.67% | ||
| Financials | Other Banks | 204B | +37.67% | ||
| Financials | Other Banks | 31.57B | +99.28% | ||
| Industrials | Integrated Logistics Operators | 34.93B | +42.48% | ||
| Basic Materials | Other Specialty Chemicals | 14.3B | +39.14% | ||
| Financials | Other Banks | 151B | +24.82% | ||
| Healthcare | Other Healthcare Facilities & Services | 27.18B | +46.02% | ||
| Industrials | Security Services | 17.22B | +21.14% | ||
| Industrials | Railway Freight Operators | 180B | +32.09% | ||
| Utilities | Other Electric Utilities | 165B | +22.39% | ||
| Financials | Other Banks | 289B | +12.30% | ||
| Financials | Other Financial & Commodity Market Operators | 16.88B | +21.52% | ||
| Technology | Other Communications & Networking | 405B | +32.90% | ||
| Industrials | Other Electrical Components & Equipment | 56.99B | +13.97% | ||
| Financials | Wealth Management | 12.51B | +31.49% | ||
| Financials | Other Banks | 52.1B | +9.64% | ||
| Financials | Other Banks | 67.21B | +36.89% | ||
| Healthcare | Other Pharmaceuticals | 641B | +31.54% | ||
| Industrials | Testing & Measuring Equipment | 51.94B | +38.81% | ||
| Financials | Other Banks | 18.67B | +44.39% | ||
| Basic Materials | Other Specialty Chemicals | 6.83B | +34.06% | ||
| Industrials | Other Air Freight & Logistics | 26.56B | +34.40% | ||
| Basic Materials | Other Commodity Chemicals | 130B | +28.60% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 51.5B | -2.17% | ||
| Consumer Non-Cyclical | Other Tobacco | 324B | +31.99% | ||
| Energy | Other Oil & Gas Refining and Marketing | 724B | +41.05% | ||
| Technology | Other IT Services & Consulting | 28.16B | +31.53% | ||
| Technology | Other IT Services & Consulting | 6.52B | -43.60% | ||
| Technology | Other Wireless Telecommunications Services | 12.28B | +24.42% | ||
| Consumer Non-Cyclical | Other Food Processing | 47.54B | -11.90% | ||
| Healthcare | Medical & Diagnostic Laboratories | 28.74B | +44.98% | ||
| Technology | Other Wireless Telecommunications Services | 68.22B | +4.02% | ||
| Industrials | Other Electrical Components & Equipment | 152B | +11.18% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 72.41B | +1.46% | ||
| Real Estate | Other Real Estate Development & Operations | 28.35B | -12.46% | ||
| Consumer Non-Cyclical | Other Food Processing | 82.43B | +26.40% | ||
| Healthcare | Other Managed Healthcare | 89.39B | +22.28% | ||
| Healthcare | Other Pharmaceuticals | 135B | +19.52% | ||
| Healthcare | Other Pharmaceuticals | 126B | +17.00% | ||
| Energy | Other Oil & Gas Transportation Services | 88.64B | +12.10% | ||
| Technology | Electronic Component | 208B | +15.87% | ||
| Industrials | Other Aerospace & Defense | 23.93B | +17.34% | ||
| Utilities | Other Electric Utilities | 19.7B | +18.22% | ||
| Healthcare | Other Pharmaceuticals | 505B | +26.54% | ||
| Healthcare | Biopharmaceuticals | 23.97B | +22.87% | ||
| Industrials | Transaction & Payment Services | 782B | +23.53% | ||
| Healthcare | Other Pharmaceuticals | 1,255B | +33.19% | ||
| Basic Materials | Industrial Gas | 235B | +22.66% | ||
| Healthcare | Other Managed Healthcare | 363B | +22.64% | ||
| Technology | Other Communications & Networking | 81.26B | +27.84% | ||
| Healthcare | Other Pharmaceuticals | 286B | +1.70% | ||
| Technology | Other Integrated Telecommunications Services | 49.1B | +17.23% | ||
| Healthcare | Other Pharmaceuticals | 208B | +41.46% | ||
| Industrials | Other Construction & Engineering | 9.73B | +16.29% | ||
| Industrials | Diversified Industrial Goods Wholesale | 98.73B | +14.99% | ||
| Utilities | Other Electric Utilities | 13.06B | +19.50% | ||
| Technology | Wireless Telecom | 71.09B | +8.61% | ||
| Industrials | Diversified Industrial Goods Wholesale | 110B | +43.56% | ||
| Real Estate | Other Specialized REITs | 68.19B | +16.55% | ||
| Utilities | Other Multiline Utilities | 55.82B | -6.84% | ||
| Financials | Other Banks | 22.9B | +5.07% | ||
| Real Estate | Industrial REITs | 5.18B | -12.39% | ||
| Real Estate | Self-Storage REITs | 9.89B | +26.80% | ||
| Basic Materials | Integrated Mining | 140B | +3.45% | ||
News of the components
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