5 Best Low Volatility ETFs To Buy

In this article, we discuss 10 best low volatility ETFs to buy. If you want to read our discussion on low volatility investments, head over to 10 Best Low Volatility ETFs To Buy. 

5. Invesco S&P 500 Low Volatility ETF (NYSE:SPLV)

5-Year Share Price Performance as of April 4: 23.18%

Invesco S&P 500 Low Volatility ETF (NYSE:SPLV) is based on the S&P 500 Low Volatility Index, which includes the 100 securities from the S&P 500 Index with the lowest volatility over the past year. The fund was launched on May 5, 2011. As of April 5, 2024, the ETF features an expense ratio of 0.25%. It is one of the best low volatility ETFs. 

Berkshire Hathaway Inc. (NYSE:BRK-B) is the largest holding of the Invesco S&P 500 Low Volatility ETF (NYSE:SPLV). Berkshire Hathaway Inc. (NYSE:BRK-B) reported fourth-quarter earnings that increased by 28% compared to the previous year, primarily due to gains in insurance underwriting and investment income. With $167.6 billion in cash and short-term securities, boosted by interest from short-term Treasury securities, the company is moving closer to reaching a market capitalization of $1 trillion.

According to Insider Monkey’s fourth quarter database, 117 hedge funds were bullish on Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 116 funds in the last quarter. 

Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q3 2022 investor letter:

“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”

4. iShares MSCI USA Min Vol Factor ETF (BATS:USMV)

5-Year Share Price Performance as of April 4: 40.25%

iShares MSCI USA Min Vol Factor ETF (BATS:USMV) aims to replicate the performance of the MSCI USA Minimum Volatility Index, which comprises US equities known for experiencing lower volatility compared to the overall US equity market. The fund was established on October 18, 2011. As of April 5, 2024, the fund’s net assets amounted to $24.2 million, along with an expense ratio of 0.15% and a portfolio comprising 165 stocks. iShares MSCI USA Min Vol Factor ETF (BATS:USMV) ranks 4th on our list of the best low volatility ETFs. 

Broadcom Inc. (NASDAQ:AVGO) is the largest holding of the iShares MSCI USA Min Vol Factor ETF (BATS:USMV). Barclays stated that Broadcom is well-positioned to capitalize on the “second wave of AI” and assigned a price target of $1,405 for the stock on March 20. 

According to Insider Monkey’s fourth quarter database, 91 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO), compared to 87 funds in the prior quarter. 

Carillon Eagle Growth & Income Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its fourth quarter 2023 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) traded higher after closing on its acquisition of VMware. The company also announced earnings that were relatively in line with estimates with some benefit of better operating expenses. The stock appears to be one of the first real beneficiaries of generative artificial intelligence (AI) with meaningful revenue expected to show up in 2024.”

3. SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV)

5-Year Share Price Performance as of April 4: 51.17%

SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV) aims to track the performance of the SSGA US Large Cap Low Volatility Index. This index includes a subset of the largest 1000 US stocks by market capitalization, utilizing a rules-based approach to increase exposure to low volatility stocks. The fund was established on February 20, 2013. As of April 5, 2024, SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV)’s assets under management amounted to $703.81 million, along with a portfolio of 162 stocks and a gross expense ratio of 0.12%. It is one of the best low volatility ETFs to buy. 

PepsiCo, Inc. (NASDAQ:PEP) is the top holding of SPDR SSGA US Large Cap Low Volatility Index ETF (NYSE:LGLV). On April 3, Argus downgraded PepsiCo, Inc. (NASDAQ:PEP) from Buy to Hold, citing concerns about potential revenue growth slowdown due to price increases. Analyst John Staszak highlighted the impact of consumers favoring dining out over meals at home and the potential influence of weight-loss drugs on consumer spending habits. However, Staszak remains optimistic about PepsiCo’s long-term prospects, citing strengths in digital operations, distribution efficiency, brand power, and supply chain improvements. 

According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on PepsiCo, Inc. (NASDAQ:PEP), compared to 65 funds in the last quarter. 

Aristotle Atlantic Core Equity Strategy stated the following regarding PepsiCo, Inc. (NASDAQ:PEP) in its fourth quarter 2023 investor letter:

“We sold PepsiCo, Inc. (NASDAQ:PEP) based on our belief that the inflation and interest rate cycle has peaked, and the company may have difficulty maintaining the recent organic growth trends which were driven mainly by price increases. Furthermore, the market appears to be shifting away from defensive names and into a more cyclical positioning which could cause PepsiCo to lag.”

2. SPDR Russell 1000 Low Volatility Focus ETF (NYSE:ONEV)

5-Year Share Price Performance as of April 4: 58.44%

SPDR Russell 1000 Low Volatility Focus ETF (NYSE:ONEV) aims to mirror the performance of the Russell 1000 Low Volatility Focused Factor Index. It utilizes factor investing to target specific investor goals, such as downside protection, by focusing on stocks with low volatility. SPDR Russell 1000 Low Volatility Focus ETF (NYSE:ONEV) ranks 2nd on our list of the best low volatility ETFs. As of April 5, 2024, the fund owns $651.67 million in assets under management, with a gross expense ratio of 0.20% and a portfolio of 468 stocks. 

Cencora, Inc. (NYSE:COR) is one of the top holdings of SPDR Russell 1000 Low Volatility Focus ETF (NYSE:ONEV). Cencora, Inc. (NYSE:COR) is a pharmaceutical sourcing and distribution company with two main segments – U.S. Healthcare Solutions and International Healthcare Solutions. On January 31, the company reported earnings for the quarter ended December 31, 2023. Cencora announced a non-GAAP EPS of $3.28 and a revenue of $72.3 billion, exceeding Wall Street estimates by $0.39 and $3.06 billion, respectively. 

According to Insider Monkey’s fourth quarter database, 48 hedge funds were bullish on Cencora, Inc. (NYSE:COR), compared to 43 funds in the last quarter. 

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Cencora, Inc. (NYSE:COR) in its fourth quarter 2023 investor letter:

“Our preference within Health Care is for novel therapies to address unmet medical needs, specialized providers, and innovators. Cencora, Inc. (NYSE:COR) sources and distributes pharmaceutical products. Another strong quarter boosted its stock by 14%, with beats across all major metrics. Cencora’s mix is heavily weighted to specialty drugs and that continues to drive above market growth. Management’s forward guidance was better than feared.”

1. Fidelity Low Volatility Factor ETF (NYSE:FDLO)

5-Year Share Price Performance as of April 4: 61.94%

Fidelity Low Volatility Factor ETF (NYSE:FDLO) aims to replicate the performance of the Fidelity U.S. Low Volatility Factor Index before fees and expenses. This index is specifically designed to mirror the performance of stocks from large and mid-capitalization American companies that exhibit lower volatility compared to the broader market. Fidelity Low Volatility Factor ETF (NYSE:FDLO) ranks 1st on our list of the best low volatility ETFs. As of December 31, 2023, the fund owned $1,126.7 million in net assets, along with a portfolio of 127 stocks and an expense ratio of  0.15%. 

Apple Inc. (NASDAQ:AAPL) is one of the top holdings of Fidelity Low Volatility Factor ETF (NYSE:FDLO). For the last quarter of 2023, Apple Inc. (NASDAQ:AAPL) reported a GAAP EPS of $2.18 and a revenue of $119.6 billion, outperforming Wall Street estimates by $0.07 and $1.34 billion, respectively. 

According to Insider Monkey’s fourth quarter database, 131 hedge funds were long Apple Inc. (NASDAQ:AAPL), compared to 134 funds in the last quarter. 

Orbis Global Equity Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2023 investor letter:

“Never before has following the crowd made so much money. Nor, in our estimation, so little sense. But just look at the opportunities the crowd has left for those of us willing to take a different view. We could wax lyrical about the glaring difference in value between Korean banks priced at 4 times earnings, versus Apple Inc. (NASDAQ:AAPL) at 28 times, despite diverging fundamentals—Apple is increasingly at risk of bans in China, while Korean banks could double their dividends.”

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