If you’re retired—or nearing retirement—you’ve probably felt that nervous churn in your stomach during a market drop.
You turn on the news and hear the market is down 500 points. Suddenly, you’re wondering whether your nest egg is shrinking faster than you can rebuild it. That’s not the kind of stress you want in your golden years.
That’s exactly why many retirees are turning to low volatility stocks—the “boring” investments that don’t make headlines but quietly deliver consistent returns and peace of mind.
So, what are low volatility stocks? Why do they matter for retirees? And how can you use them in your own portfolio?
Let’s dig in.
What Are Low Volatility Stocks?
In simple terms, low volatility stocks are stocks that tend to move up and down less than the overall market.
They don’t swing wildly with every piece of economic news or market drama. When the market zigs, they only zig a little. When it zags, they stay steady. That makes them ideal for conservative investors—especially retirees who want stability, safety, and predictability.
These stocks often belong to companies that provide essential goods and services that people continue buying even in tough times. Think: toothpaste, electricity, toilet paper, prescription drugs. These aren’t flashy companies. But they’re reliable.
The Power of Staying Calm During Storms
During major market crashes—like the dot-com bust, the 2008 financial crisis, or the COVID-19 panic—low volatility stocks have historically lost far less value than the broader market.
Here’s what that means for you: fewer sleepless nights and less temptation to sell at the worst possible time.
And because they recover faster from downturns (thanks to smaller losses), low volatility stocks often outperform over the long term—even if they don’t soar as high during bull markets.
It’s the “slow and steady wins the race” approach to investing.
Classic Low Volatility Stocks That Never Go Out of Style
Some companies are practically the poster children for low volatility:
- Johnson & Johnson (JNJ): With products in every medicine cabinet, from Band-Aids to Tylenol, J&J has a history of slow, steady growth and reliable dividends.
- Procter & Gamble (PG): Makers of everyday essentials like Tide, Gillette, and Pampers. People keep buying these, even during recessions.
- PepsiCo (PEP): Not just soda—Pepsi owns a massive snack empire including Frito-Lay. Steady sales, even in down markets.
- Duke Energy (DUK): As a regulated utility company, Duke provides electricity no matter what the economy is doing.
These companies may not double in value overnight—but that’s exactly the point. They deliver predictable returns and income, year after year.
The ETF Solution: LGLV and SMLV
While picking individual stocks like J&J or PepsiCo can work well, many retirees prefer to own a diversified basket of low volatility stocks through ETFs (exchange-traded funds). It’s simpler, less risky, and easier to manage.
Two great examples:
- LGLV (SPDR SSGA US Large Cap Low Volatility Index ETF): This ETF holds low-volatility stocks from the S&P 500. It gives you exposure to stable blue-chip companies without the stomach-churning swings of the broader market.
- SMLV (SPDR SSGA US Small Cap Low Volatility Index ETF): Want a little more growth? This ETF focuses on smaller companies that still have low price swings. It’s a nice way to balance safety with a bit more upside.
Why retirees love these ETFs:
- They reduce risk. By focusing on lower-volatility stocks, they help protect your retirement portfolio.
- They diversify your holdings. You’re not betting on just one or two companies.
- They’re easy to own and manage. One purchase gives you access to dozens (or hundreds) of safe, stable stocks.
A Real-Life Example: Meet Frank and Linda
Frank and Linda retired in their early 70s and decided they’d had enough of wild stock swings. After losing sleep during the COVID-19 crash in 2020, they met with a financial advisor to find a more stable way to grow their savings.
They shifted a large portion of their retirement portfolio into low-volatility ETFs—about 60% into LGLV and 20% into SMLV, leaving the rest in a mix of bonds and cash.
When the market got bumpy again in 2022 and early 2023, Frank and Linda weren’t fazed. Their low-volatility stocks dropped less than half as much as the overall market—and bounced back quickly.
They didn’t panic. They didn’t sell. And they didn’t have to change their lifestyle.
Now they say it’s the best financial move they ever made.
The Downside? You’re Not Going to Get Rich Overnight
Let’s be clear—low volatility investing isn’t about chasing big gains.
If you’re looking for the next tech rocket or meme stock, this isn’t it.
But if your goal is peace of mind, predictable growth, and steady income, then boring might be the best thing that ever happened to your portfolio.
You won’t see eye-popping returns every year—but you also won’t see your portfolio get cut in half during the next downturn.
A Strategy Built for Retirement
Low volatility investing isn’t just a trend—it’s a strategy tailor-made for retirees.
Here’s why it works so well:
- You don’t have time to recover from big market crashes.
- You need dependable income without huge risks.
- You want to protect what you’ve built, not gamble it.
Low volatility stocks—and the ETFs that hold them—let you do exactly that.
They give you exposure to the stock market without the roller coaster.
Final Thoughts
The older you get, the more you realize: sometimes the smartest move is the safest one.
Low volatility stocks won’t make headlines. They won’t make you a millionaire overnight. But they’ll help you sleep better, stay invested, and enjoy retirement without constant financial anxiety.
And that may be the best return of all.
Want to Learn More?
This blog post is an excerpt from my book:
📘 Your Boring Portfolio: Get Off the Stock Market Roller Coaster and Sleep Well at Night with Low-Volatility Stocks
In it, you’ll learn:
✅ Why low-volatility investing works so well
✅ How to choose the best ETFs and stocks
✅ Real-life portfolios for retirees
✅ How to pair low volatility with value, dividends, and income strategies
✅ Why boring investing may be the smartest decision you ever make
Available now on Amazon.com in paperback and Kindle formats.
Ready to stop worrying and start relaxing? Build your boring portfolio today.
Disclaimer: For Educational Purposes Only
The content on this website is intended for general educational use and should not be considered personalized financial, legal, or tax advice. Always consult a qualified professional before making financial decisions. All investments carry risk, and past performance is not a guarantee of future results. The author assumes no liability for actions taken based on this content.