4 Low-Volatility Stock Funds
These exchange-traded funds and one mutual fund will soothe your nerves while sticking with stocks.

New exchange-traded funds may be just the ticket for jittery investors. These ETFs invest in stocks that shimmy the least. The one we like best is PowerShares S&P 500 Low Volatility Portfolio (symbol SPLV). Standard & Poor’s takes the 100 least-volatile stocks in the S&P 500 index over the previous 12 months, weights them by volatility (the less volatile a stock, the bigger its position in the specialized index) and rebalances the holdings quarterly. Note that S&P bases volatility on standard deviation, not beta.
The ETF charges just 0.25% a year and uses the simplest methodology. Since its May 2011 launch, it has garnered $1.7 billion in assets and is by far the most liquid and easily traded of the new class of ETFs. True to its low-volatility nature, its returns lagged early in 2012. Through April 5, the ETF gained 3.9%, compared with 11.8% for the S&P 500. Top holdings include utility Southern Company, Procter & Gamble and Coca-Cola.
Competing funds include the Russell 1000 Low Volatility ETF (LVOL) and iShares MSCI USA Minimum Volatility Index Fund (USMV). There are low-volatility ETF options for both developed and emerging markets as well.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Some actively run mutual funds tend to gravitate toward low-volatility stocks. Our favorite is Vanguard Dividend Growth (VDIGX), a member of the Kiplinger 25. It also lagged the market early in 2012, with a year-to-date gain of 6.9%. But its long-term record is superb.
ORDER NOW: Buy Kiplinger’s Mutual Funds 2012 special issue for in-depth guidance on the only investments you need.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Anne Kates Smith brings Wall Street to Main Street, with decades of experience covering investments and personal finance for real people trying to navigate fast-changing markets, preserve financial security or plan for the future. She oversees the magazine's investing coverage, authors Kiplinger’s biannual stock-market outlooks and writes the "Your Mind and Your Money" column, a take on behavioral finance and how investors can get out of their own way. Smith began her journalism career as a writer and columnist for USA Today. Prior to joining Kiplinger, she was a senior editor at U.S. News & World Report and a contributing columnist for TheStreet. Smith is a graduate of St. John's College in Annapolis, Md., the third-oldest college in America.
-
The Five Social Security Blind Spots Retirees Often Miss
Understand how benefits work before applying, so you don’t lose money for which you qualify.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs After Vietnam Trade Deal
Ahead of a key July 9 tariff deadline, President Trump said the U.S. has reached a trade deal with Vietnam.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs After Vietnam Trade Deal
Ahead of a key July 9 tariff deadline, President Trump said the U.S. has reached a trade deal with Vietnam.
-
Stock Market Today: Another Quarter, More Mixed Price Action
"Up and to the right" remains the general trend despite persistent uncertainty around critical policy issues.
-
Stock Market Today: A Historic Quarter Closes on High Notes
"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Stock Market Today: S&P 500, Nasdaq Near New Highs
The S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
Stock Market Today: Stocks Struggle to Sustain Gains
Mixed messages from multiple sources continue to make for a messy market for investors, traders and speculators.
-
Stock Market Today: Stocks Soar on Israel-Iran Ceasefire
It was a rocky start to the truce, but a temporary halt to fighting between Israel and Iran appears to be holding for now.
-
The Riskiest S&P 500 Stocks Right Now
Buyer beware: These are five of the riskiest stocks in the S&P 500 at the moment, based on one measure of volatility.