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.
8. Allied Gold Corporation (NYSE:AAUC)
Number of Hedge Fund Holders: 7
Beta: 0.78
On February 10, Stifel analyst Ingrid Rico downgraded Allied Gold Corporation (NYSE:AAUC) to Hold from Buy and set a C$44 price target, reflecting Zijin Gold International’s agreement to acquire all outstanding shares for C$44 per share in cash.
On January 26, Allied Gold Corporation (NYSE:AAUC) agreed to be acquired by Hong Kong–listed Zijin Gold International in a friendly, all-cash transaction valuing the company’s equity at approximately C$5.5 billion. The C$44 per share offer represents a 27% premium to Allied’s 30-day volume-weighted average price on the TSX. The transaction, structured as a plan of arrangement under Ontario law, is expected to close by late April 2026 and carries no financing condition, supported by Zijin’s existing liquidity.
The deal provides shareholders with immediate and certain value at a meaningful premium, crystallizing upside in a volatile gold equity market while eliminating execution and jurisdictional risks tied to Allied’s African asset base. With the stock trading near the offer price and the transaction backed by a well-capitalized strategic buyer, the risk-reward profile currently favors investors seeking defined near-term returns rather than ongoing operational exposure. The all-cash structure also reduces market uncertainty and provides liquidity to shareholders, while Zijin’s strong balance sheet and operational expertise reinforce confidence in deal completion, making Allied an attractive merger-arbitrage style opportunity.
Allied Gold Corporation (NYSE:AAUC), founded in 2011 and headquartered in Toronto, owns and operates gold mines in Mali, Côte d’Ivoire, and Ethiopia.
7. Canopy Growth Corporation (NASDAQ:CGC)
Number of Hedge Fund Holders: 7
Beta: 0.59
On February 7, Alliance Global analyst Aaron Grey lowered the firm’s price target on Canopy Growth Corporation (NASDAQ:CGC) to C$1.80 from C$2.50 while maintaining a Neutral rating following the fiscal Q3 report. The adjustment reflects a reduced valuation multiple amid uncertainty surrounding veteran reimbursement changes and potential pressure on gross margins.
In early January, Canopy Growth Corporation (NASDAQ:CGC) announced a recapitalization plan aimed at strengthening its balance sheet and extending debt maturities to at least January 2031. The company secured a new US$150 million term loan due 2031 to refinance debt maturing in 2027, reduce interest costs, and enhance working capital flexibility. It also reached an agreement to exchange a portion of its 2029 convertible debentures for new 2031 debentures, cash, equity, and warrants, effectively pushing out debt obligations and improving capital structure flexibility. The transactions are designed to provide multi-year liquidity visibility while supporting strategic priorities, including expansion in medical cannabis and integration of MTL Cannabis.
Canopy Growth Corporation (NASDAQ:CGC), founded in 2013 and headquartered in Smiths Falls, Ontario, produces and distributes recreational and medical cannabis products across multiple markets.
6. Integra Resources Corp. (NYSE:ITRG)
Number of Hedge Fund Holders: 10
Beta: 0.72
On February 10, Stifel raised its price target on Integra Resources Corp. (NYSE:ITRG) to C$9 from C$8 and maintained a Buy rating, signaling continued confidence in the company’s development trajectory and asset base.
On February 9, Integra Resources Corp. (NYSE:ITRG) closed a US$61.6 million oversubscribed bought deal financing, issuing more than 18.1 million shares at US$3.40 each. Proceeds will fund pre-production capital at the DeLamar Project, including procurement, early works, and land acquisitions. The financing follows key permitting milestones and completion of a feasibility study, positioning the company to advance early-stage construction activities ahead of a final Record of Decision. By securing capital at this stage, Integra reduces execution risk and limits the need for near-term additional financing, strengthening its path toward a construction decision.
Integra Resources Corp. (NYSE:ITRG) is a precious metals company focused on acquisition, exploration, and development of projects in the Great Basin region of the western United States. With permitting progress, feasibility work completed, and funding in place to advance DeLamar, Integra offers investors exposure to a de-risking gold development story with clear catalysts and scalable production potential.
5. Osisko Development Corp. (NYSE:ODV)
Number of Hedge Fund Holders: 17
Beta: 0.42
On February 10, Stifel raised its price target on Osisko Development Corp. (NYSE:ODV) to C$10 from C$8 and maintained a Buy rating, reflecting continued confidence in the company’s development progress and the advancing fundamentals of its core assets. The higher target underscores growing conviction that Osisko’s flagship Cariboo Gold Project is steadily moving toward a value-creation inflection point, supported by improving project visibility and strengthening gold market dynamics.
On January 27, Osisko Development Corp. (NYSE:ODV) announced a bought deal financing with National Bank Capital Markets, RBC Capital Markets, and Cantor, under which 35.31 million common shares will be issued at $3.54 per share for gross proceeds of approximately $125 million. The net proceeds will fund infill conversion drilling, deeper exploration at the Cariboo Gold Project, and general working capital. The financing enhances liquidity and reduces near-term funding uncertainty, allowing the company to systematically de-risk Cariboo while maintaining operational momentum, making it a constructive setup for long-term resource growth and project advancement.
Osisko Development Corp. (NYSE:ODV), founded in 2006 and headquartered in Montreal, acquires, explores, and develops precious metals properties across North America. Its portfolio provides exposure to gold and other key metals, positioning the company to benefit from a supportive commodity price environment as it advances toward production.
4. Galiano Gold Inc. (NYSE:GAU)
Number of Hedge Fund Holders: 21
Beta: 0.87
On January 26, Scotiabank raised its price target on Galiano Gold Inc. (NYSE:GAU) to C$4.75 from C$3.50 while maintaining a Sector Perform rating, reflecting improved confidence in the company’s operational outlook and capital structure flexibility as it advances its Ghana-based mining operations.
On January 16, 2026, Galiano Gold Inc. (NYSE:GAU) disclosed that its operating affiliate, Asanko Gold Ghana Ltd., secured a $75 million revolving credit facility with FirstRand Bank through its Rand Merchant Bank division, alongside a syndicate of lenders. The facility is designed to provide flexible liquidity and working capital support for the Asanko Gold Mine while incorporating financial covenants and hedging arrangements to enhance risk management. The financing strengthens Galiano’s balance sheet and improves its ability to fund development initiatives, optimize operations, and manage commodity price volatility.
Access to additional liquidity provides greater financial flexibility, which is particularly valuable in the capital-intensive mining sector and supports operational continuity during expansion phases. The strengthened funding position enhances Galiano’s ability to invest in production optimization and resource development, reinforcing long-term growth potential and improving its capacity to capitalize on favorable gold price environments, making the company an appealing opportunity for investors seeking leveraged exposure to precious metals with improved financial stability.
Galiano Gold Inc. (NYSE:GAU), founded in 1999 and headquartered in Vancouver, is a mining, development, and exploration company that holds a 90% interest in the Asanko Gold Mine located on Ghana’s Asankrangwa Gold Belt.
3. enGene Holdings Inc. (NASDAQ:ENGN)
Number of Hedge Fund Holders: 21
Beta: -0.27
On January 30, Jefferies initiated coverage of enGene Holdings Inc. (NASDAQ:ENGN) with a Buy rating and a $28 price target, highlighting the company’s ongoing pivotal study in high-risk non-muscle invasive bladder cancer (NMIBC), with a key data update expected in the second half of 2026.
enGene Holdings Inc. (NASDAQ:ENGN) is positioning itself as a differentiated player in the bladder cancer treatment landscape as it advances detalimogene voraplasmid, its lead non-viral gene therapy candidate, into late-stage development. Beyond clinical momentum, enGene has strengthened its financial footing. On January 21, the company expanded its debt facility with Hercules Capital to up to $125 million, securing additional non-dilutive financing to support its planned Biologics License Application and potential U.S. commercialization. The amended agreement provides $25 million immediately to refinance existing debt and up to $100 million in additional tranches tied to clinical, regulatory, and commercial milestones. This capital structure enhances flexibility as enGene transitions from a development-stage biotech to a potential commercial-stage company in a competitive but high-need oncology market.
Founded in 1999 and headquartered in Saint-Laurent, Quebec, enGene Holdings Inc. (NASDAQ:ENGN) leverages its proprietary Dually Derivatized Chitosan (DDX) platform to develop non-viral genetic medicines targeting mucosal diseases. With pivotal data on the horizon, strengthened liquidity, and a differentiated therapeutic approach, enGene represents a high-risk, high-reward opportunity for investors seeking exposure to innovative oncology platforms with meaningful upside potential.
2. Gold Royalty Corp. (NYSE:GROY)
Number of Hedge Fund Holders: 23
Beta: 0.98
On January 23, Maxim analyst Tate Sullivan raised his price target on Gold Royalty Corp. (NYSE:GROY) to $7 from $5 and maintained a Buy rating, reflecting higher gold price assumptions and recent royalty acquisitions that are expected to support long-term production and revenue expansion.
The analyst highlighted strong year-over-year quarterly revenue growth driven by rising gold prices and contributions from newly acquired royalty assets, including transactions in Brazil that are expected to enhance future production visibility. Updated projections now anticipate meaningful revenue and earnings growth through 2027, with the company expected to transition from losses in 2025 to sustained profitability beginning in 2026. Sullivan also noted that Gold Royalty Corp. (NYSE:GROY) has strengthened its balance sheet through convertible debt redemptions and equity financing, providing additional capital to pursue further accretive royalty acquisitions. The company currently trades at a relatively modest valuation compared to projected near-term book value, offering potential upside as production ramps and acquired assets contribute to cash flow. The royalty business model, which provides exposure to precious metals production without direct operating risk, offers investors a diversified and scalable growth platform that can benefit from higher gold prices while maintaining lower capital intensity, supporting a compelling long-term investment thesis.
Gold Royalty Corp. (NYSE:GROY), founded in 2020 and headquartered in Vancouver, is a precious metals royalty company providing financing solutions to the mining industry.
1. Triple Flag Precious Metals Corp. (NYSE:TFPM)
Number of Hedge Fund Holders: 29
Beta: -0.20
On February 10, Stifel raised its price target on Triple Flag Precious Metals Corp. (NYSE:TFPM) to C$65 from C$58 while maintaining a Buy rating, signaling confidence in the company’s growth trajectory and portfolio strength. The company continues to reinforce its position as a leading gold and silver streaming company through disciplined capital deployment and long-term asset expansion.
The same day, Triple Flag announced that its subsidiary will invest $84.3 million in the fourth quarter of 2026 to support the development of the E44 gold deposit at the Northparkes mine in Australia. Under its agreement with Evolution Mining, Triple Flag Precious Metals Corp. (NYSE:TFPM) will receive guaranteed minimum deliveries of 45,052 ounces of gold and 446,200 ounces of silver between 2030 and 2037. This transaction adds long-duration, high-quality production exposure in a stable jurisdiction, further diversifying the company’s asset base.
With a market capitalization of approximately $7.4 billion and revenue growth of 39.54% over the past twelve months, Triple Flag Precious Metals Corp. (NYSE:TFPM) has demonstrated strong financial execution. Its streaming and royalty model provides leverage to precious metals prices while limiting direct operational risk, an attractive feature in uncertain macro environments. Headquartered in Toronto and founded in 2016, the company offers investors exposure to gold and silver assets primarily across the Americas and Australia.
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