In this article, we will discuss 10 Best Low Volatility Canadian Stocks to Buy.
After more than a decade of U.S. market leadership, cracks emerged in 2025. Valuation premiums that once heavily favored American equities have narrowed, and the current U.S.-led cycle, which was already longer than most in modern history, faces mounting pressure from policy uncertainty, moderating growth expectations, and rising geopolitical risks. Forward-looking capital market assumptions from major institutions suggest developed international equities could deliver stronger long-term returns than the U.S., driven in part by valuation normalization and shifting earnings momentum. In this environment, investors may benefit from broadening their geographic exposure.
Canadian equities offer a compelling alternative. The market provides differentiated exposure to sectors that are tied to tangible assets and cash-generative business models rather than concentrated mega-cap technology leadership. Canada’s economic drivers, regulatory framework, and currency dynamics can help diversify portfolios that are overly reliant on U.S. growth stocks, potentially smoothing returns during periods of heightened volatility or dollar weakness.
Pairing Canadian exposure with a low-volatility strategy further strengthens the investment case. Low-volatility stocks, typically characterized by lower beta and steadier earnings profiles, have historically delivered attractive risk-adjusted returns; an outcome often described as the “low-volatility anomaly.” By limiting drawdowns during market stress, these companies preserve capital and enhance long-term compounding, since smaller losses require less recovery to break even. In uncertain or late-cycle conditions, this defensive profile becomes especially valuable.
Against a backdrop of shifting global leadership and elevated macro risk, low-volatility Canadian stocks combine geographic diversification with downside resilience, offering investors a balanced path to steady, risk-conscious long-term growth.
With this context in mind, here is a list of the 10 best low-volatility Canadian stocks to buy.
Our Methodology
For this article, we used an online stock screener to extract a list of Canadian stocks with a beta below 1. Next, we ranked those stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q3 2025. We assessed hedge fund ownership of each stock using Insider Monkey’s hedge fund database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Low Volatility Canadian Stocks to Buy
10. TRX Gold Corporation (NYSE:TRX)
Number of Hedge Fund Holders: 2
Beta: 0.34
On February 9, Roth Capital raised its price target on TRX Gold Corporation (NYSE:TRX) to $2.25 from $1.25 and maintained a Buy rating. The firm cited the company’s strategy of moving directly into production to generate cash flow while minimizing shareholder dilution. According to the analyst, disciplined financial management and current metal prices could allow TRX to reach its targeted long-term production levels without issuing additional equity.
On January 29, 2026, TRX Gold Corporation (NYSE:TRX) filed a Form 6-K with U.S. regulators in connection with its upcoming annual general and special meeting of shareholders scheduled for February 25, 2026. The filing includes the notice of meeting, management information circular, and proxy materials. Shareholders will vote on standard governance matters, including receiving audited financial statements for the fiscal year ended August 31, 2025, setting the board size at five directors, electing directors, appointing the auditor, authorizing auditor remuneration, and addressing other proper business. The filing reflects routine governance and disclosure procedures.
TRX Gold Corporation (NYSE:TRX) is engaged in the exploration, development, and production of mineral property interests in Tanzania. Founded in 1990 and headquartered in Oakville, Canada, the company is focused on advancing its projects through internally generated cash flow rather than equity financing. With production underway and a strategy centered on disciplined capital allocation, TRX Gold is positioning itself to scale operations while preserving shareholder value.
9. Nouveau Monde Graphite Inc. (NYSE:NMG)
Number of Hedge Fund Holders: 3
Beta: 0.76
On January 20, Maxim analyst Tate Sullivan initiated coverage of Nouveau Monde Graphite Inc. (NYSE:NMG) with a Buy rating and a $6 price target, signaling confidence in the company’s vertically integrated graphite strategy and its positioning within the North American battery materials supply chain. The initiation reflects growing investor interest in domestic critical mineral projects as automakers and battery manufacturers seek secure, non-Chinese sources of anode material.
On December 19, 2025, Nouveau Monde Graphite Inc. (NYSE:NMG) closed a US$20 million public offering of 8.33 million common shares at US$2.40 per share, with Maxim Group acting as sole placement agent. The proceeds will support procurement of long-lead equipment, early construction activities, and engineering work for the Matawinie Mine, as well as advancement toward an AACE Class 3 estimate for the planned 13,000-ton-per-year Bécancour Battery Material Plant. The capital raise strengthens liquidity as NMG advances its fully integrated Québec-based graphite operation, designed to produce high-purity, carbon-neutral anode material for lithium-ion batteries.
With funding in place to advance both mining and downstream processing assets, Nouveau Monde Graphite Inc. (NYSE:NMG) offers exposure to a strategically important segment of the EV supply chain at a time when localization and energy security remain key policy priorities, supporting long-term demand visibility for battery-grade graphite.
Nouveau Monde Graphite Inc. (NYSE:NMG), founded in 2012, develops, mines, and processes graphite in Québec, Canada.
