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 | 319B | +17.81% | ||
| Financials | Other Banks | 247B | +34.42% | ||
| Financials | Other Banks | 157B | +24.90% | ||
| Financials | Other Banks | 101B | +45.45% | ||
| Financials | Other Banks | 165B | +31.85% | ||
| Technology | Other Semiconductors | 1,932B | +56.13% | ||
| Consumer Non-Cyclical | Other Non-Alcoholic Beverages | 402B | +33.63% | ||
| Financials | Other Banks | 197B | +31.11% | ||
| Financials | Other Banks | 32.74B | +109.67% | ||
| Industrials | Integrated Logistics Operators | 33.08B | +34.36% | ||
| Financials | Other Banks | 319B | +37.00% | ||
| Financials | Other Financial & Commodity Market Operators | 17.35B | +22.58% | ||
| Financials | Other Banks | 70.11B | +35.40% | ||
| Industrials | Testing & Measuring Equipment | 57.18B | +65.29% | ||
| Healthcare | Other Pharmaceuticals | 612B | +22.63% | ||
| Industrials | Security Services | 16.91B | +20.58% | ||
| Basic Materials | Other Specialty Chemicals | 15.45B | +45.33% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 50.1B | -8.66% | ||
| Industrials | Railway Freight Operators | 171B | +24.07% | ||
| Utilities | Other Electric Utilities | 154B | +14.81% | ||
| Healthcare | Other Healthcare Facilities & Services | 25.93B | +35.37% | ||
| Financials | Other Property & Casualty Insurance | 8.03B | +26.25% | ||
| Technology | Other Communications & Networking | 420B | +38.26% | ||
| Financials | Wealth Management | 12.58B | +27.76% | ||
| Industrials | Other Electrical Components & Equipment | 56.68B | +20.41% | ||
| Industrials | Other Air Freight & Logistics | 25.58B | +32.08% | ||
| Technology | Other IT Services & Consulting | 6.26B | -25.49% | ||
| Consumer Non-Cyclical | Other Tobacco | 313B | +25.34% | ||
| Technology | Other Wireless Telecommunications Services | 70.76B | +8.60% | ||
| Consumer Cyclical | Automotive Parts & Accessories Retailers | 72.05B | -2.35% | ||
| Basic Materials | Other Specialty Chemicals | 6.77B | +33.69% | ||
| Industrials | Other Electrical Components & Equipment | 152B | +22.92% | ||
| Financials | Other Banks | 18.19B | +39.80% | ||
| Energy | Other Oil & Gas Refining and Marketing | 733B | +48.15% | ||
| Basic Materials | Other Commodity Chemicals | 124B | +17.61% | ||
| Consumer Non-Cyclical | Other Food Processing | 43.73B | -20.55% | ||
| Energy | Other Oil & Gas Transportation Services | 86.09B | +17.09% | ||
| Industrials | Other Aerospace & Defense | 25.38B | +23.16% | ||
| Technology | Other IT Services & Consulting | 27.68B | +26.15% | ||
| Real Estate | Other Real Estate Development & Operations | 27.67B | -18.29% | ||
| Technology | Other Wireless Telecommunications Services | 12.17B | +20.28% | ||
| Basic Materials | Integrated Mining | 153B | +9.51% | ||
| Healthcare | Other Pharmaceuticals | 120B | +9.07% | ||
| Technology | Electronic Component | 198B | +18.81% | ||
| Industrials | Other Construction & Engineering | 9.57B | +11.47% | ||
| Utilities | Other Electric Utilities | 18.84B | +12.69% | ||
| Healthcare | Biopharmaceuticals | 22.96B | +14.66% | ||
| Healthcare | Other Pharmaceuticals | 286B | +13.85% | ||
| Industrials | Diversified Industrial Goods Wholesale | 110B | +31.40% | ||
| Real Estate | Other Specialized REITs | 64.18B | +11.82% | ||
| Healthcare | Other Pharmaceuticals | 1,106B | +15.41% | ||
| Basic Materials | Industrial Gas | 232B | +18.07% | ||
| Healthcare | Other Managed Healthcare | 93.3B | +22.73% | ||
| Financials | Other Banks | 22.39B | +4.19% | ||
| Healthcare | Other Pharmaceuticals | 127B | +10.72% | ||
| Technology | Other Integrated Telecommunications Services | 49.48B | +14.18% | ||
| Healthcare | Other Pharmaceuticals | 190B | +24.71% | ||
| Technology | Other Wireless Telecommunications Services | 29.61B | +6.71% | ||
| Industrials | Diversified Industrial Goods Wholesale | 101B | +16.35% | ||
| Healthcare | Other Pharmaceuticals | 500B | +23.72% | ||
| Utilities | Other Electric Utilities | 12.26B | +14.06% | ||
| Technology | Wireless Telecom | 74.53B | +15.08% | ||
| Healthcare | Other Medical Equipment, Supplies & Distribution | 12.92B | +30.77% | ||
| Healthcare | Other Pharmaceuticals | 65.79B | -21.99% | ||
| Consumer Non-Cyclical | Other Food Retail & Distribution | 37.24B | +0.91% | ||
| Healthcare | Other Managed Healthcare | 365B | +23.26% | ||
| Technology | Other Communications & Networking | 75.95B | +19.72% | ||
News of the components
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