Investing is about balancing risk and reward. That's why regardless of market conditions, many investors with a low-risk tolerance choose to invest in low beta stocks. Beta is a measurement of volatility between two assets. For stock investors this means how an individual stock compares to an index that it tracks.
For example: How does the performance of The Coca-Cola Company (NYSE: KO) compare to the performance of the S&P 500 index? A beta below 1.0 is considered a low. It also means that investors should expect that stock, in general, to be less volatile than the S&P 500 index.
But what does less volatile really mean? Basically, it means you can expect lower highs compared to the broader market but also higher lows. Simply put, the stock may not outperform a high-beta stock, but it will have higher lows on a percentage basis in a market sell-off.
In this special presentation, we analyze seven low-beta stocks that risk-averse investors may want to consider as the market continues to struggle with volatility.
Click the "Continue to Slide #1" button to view the first company.
