The markets have been unusually calm lately, but if clients are concerned about volatility, stemming either from geopolitics or Hurricane Harvey wreaking havoc in the energy sector, there are a number of measures that can help.
Standard deviation is one such gauge, which we analyzed recently. Here, we show funds that have the smallest beta scores, either positive or negative. Scores higher than 1 indicate funds that are more volatile than the market; scores less than 1 are less so. The average value among these funds, even in absolute terms, was just 0.125, so they all hovered close to zero. This stability comes at a cost, though, as the average expense ratio was more than 1%.
We looked at funds that had at least $100 million in assets, and a one-year return of at least 8%. That’s less than the S&P 500, of course, but managing for volatility entails a willingness to accept less on the upside to guard against the downside. Scroll through to see the funds that meet those two requirements, ranked by the smallest beta scores.