Low-Volatility Stocks Deliver 10% Returns With 21% Less Risk, Says MarketWatch Analyst

According to MarketWatch columnist Mark Hulbert, low-volatility stocks have historically provided nearly equivalent returns to the broader market with significantly lower risk. Based on performance data through May 2026, the S&P 500 Low Volatility Index and MSCI USA Minimum Volatility Index both delivered annual returns of around 10.3-10.4%, compared to 11.5% for the S&P 500—a difference of just 1-1.2% annually. However, these low-volatility indices exhibited approximately 21% lower volatility than the S&P 500, providing substantially better risk-adjusted returns.

Using a dual-screening methodology, Hulbert identified 10 low-volatility defensive stocks currently recommended by multiple investment newsletters: WEC Energy Group, Realty Income Corp., Pennsylvania Power & Light, Medtronic, General Mills, Kimberly-Clark, Abbott, Tyson Foods, Snap-on Inc., and Roper Technologies. These stocks concentrate in utilities, consumer staples, and healthcare—industries with strong downside protection during market volatility.