Low-volatility stocks: the twenty calmest
Hold the large companies whose prices move least. Boring stocks have historically done better than their risk suggests.
The rule
Measure how much each stock's price swung over the past year. Hold the calmest ones in equal parts and review a few times a year.
Why people use it
Calm stocks fall less in a crisis, which makes them easier to hold. Investors tend to overpay for exciting stocks, leaving dull ones cheaper than they deserve.
Where it hurts
In fast rallies led by technology they lag badly. Calm stocks cluster in a few sectors such as utilities and consumer staples, and those sectors suffer when interest rates rise.
How our bot runs it
From the hundred largest US companies the bot takes the twenty with the lowest daily volatility over 252 trading days, 5% each. Reviewed on the first trading day of each quarter.
Live account
A virtual $100,000 account that follows this rule. Every trade is on the bot's page.
| Bot | Account | Return |
|---|---|---|
| Twenty calmest stocks | $100,689 | +0.69% |