10 Best Low Volatility Investments in December 2025

In this article, we will take a look at the 10 Best Low Volatility Investments in December 2025.

As the market finishes off a dull November, investors will be looking for signs of the broader economy’s health in the weeks to come to help keep the US equity market steady. Tech stocks bore the brunt of November’s downturn, with the sector’s 2.15% monthly slump driving down the overall market performance. The drop comes as investors examine valuations in artificial intelligence and semiconductor firms, which fueled much of 2024’s gains.

However, December has the potential to be a key month for the market. On December 10, the US Federal Reserve will hold its final two-day meeting of the year, during which the federal funds rate (overnight interest rate) is largely predicted to be reduced. A quarter percentage point drop by the Fed in December would be the third in a row following its September and October meetings. Traders had also begun modifying their expectations for lower rates since New York Fed President John Williams stated recently that there was opportunity for “a further adjustment in the near term to the target range for the federal funds rate.”

Considering the economy stands at a crossroads, with persistent inflation and growing unemployment, the central bank’s decision, along with the following remarks from chairman Jerome Powell, may impact the stock market’s trajectory as we approach 2026.

Our Methodology

We used a number of criteria to shortlist stocks for December 2025, including a beta value of less than 0.5, excellent fundamentals, positive analyst ratings, and optimistic price projections. We next narrowed our choices by excluding midcap or lower-cap companies, as well as stocks with inconsistent dividend yields. The remaining equities were examined using Insider Monkey’s database of premier hedge funds tracked through the third quarter of 2025.

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. AstraZeneca PLC (NASDAQ:AZN)

Beta Value: 0.32

Dividend Yield: 1.69%

Number of Hedge Fund Holders: 54

AstraZeneca PLC (NASDAQ:AZN) ranks among the Best Low Volatility Investments in December 2025. BofA Securities maintained its Buy rating on AstraZeneca PLC (NASDAQ:AZN) and increased its price target to $108.50 from $91.70 on November 25. AstraZeneca PLC (NASDAQ:AZN) was listed on the company’s Europe 1 list of top ideas and ranked as one of its 25 stocks for 2026.

According to BofA, the upcoming 12 months will see many critical clinical trial readouts with strong sales potential, including AVANZAR in NSCLC and SERENA-4 in all-comer mBC. The firm stated that, regardless of investor reservations regarding owning AstraZeneca PLC (NASDAQ:AZN) ahead of the AVANZAR readout, current consensus represents restricted peak revenue estimates, resulting in what the firm considers attractive upside potential.

Additionally, on November 21, AstraZeneca PLC (NASDAQ:AZN) announced a major $2 billion commitment to expand its manufacturing facilities in Maryland. This move will significantly boost production capacity at the Frederick biologics factory and build a new clinical manufacturing facility in Gaithersburg, creating 2,600 jobs across both locations.

AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians.