Best Low Volatility ETFs in 2026

A low volatility ETF won’t make you more money than the S&P 500 over time — that’s not the point. These funds are built to fall less than the broader market during downturns, in exchange for usually gaining less during rallies. Whether that tradeoff makes sense depends entirely on how much you can stomach watching your portfolio swing.

Here are three low volatility ETFs, including one, SPHD, that pairs that lower-swing approach with a high monthly dividend.

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How we picked these funds

Each fund here represents a genuinely different approach to cutting volatility, rather than three near-identical options. SPLV and USMV sit on opposite ends of how a low-volatility index can be built: ranking individual stocks by their own past volatility versus modeling how stocks move together as a portfolio. SPHD adds a high-dividend screen on top of the same basic idea. Within each approach, we favored the largest, most established fund built on a transparent, rules-based index, rather than funds that rely on discretionary stock-picking or an opaque screening process.

How low volatility ETFs are built

Most low volatility ETFs track an index that screens for low volatility mechanically rather than through a manager’s judgment. The S&P Low Volatility Index, for example, selects the 100 least volatile stocks in the S&P 500, measuring volatility as the standard deviation of each stock’s daily returns over the prior 252 trading days. It then weights the least volatile stocks the most heavily. The index rebalances quarterly.⁽¹⁾

1. Invesco S&P 500 Low Volatility ETF (SPLV) — best for a simple, transparent approach

SPLV tracks that S&P Low Volatility Index directly, giving broad exposure to the 100 least volatile stocks in the S&P 500 without any dividend-specific screen.⁽²⁾ It charges a 0.25% expense ratio, holds about $7.2 billion in assets and yields around 2.47% as of October 2026.⁽²⁾

Because the index only screens for volatility, SPLV’s sector mix can drift heavily toward defensive sectors like utilities and consumer staples, which tend to be less volatile but also slower-growing.

2. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) — best for low volatility plus income

SPHD takes a different starting point: it first narrows the S&P 500 down to the 75 highest-yielding stocks, then keeps only the 50 of those with the lowest volatility.⁽³⁾ That order matters — SPHD is a high-dividend fund that screens for volatility second, not a low-volatility fund that happens to pay well. It pays monthly yields around 4.57% as of October 2026, charges a 0.30% expense ratio and holds about $3.2 billion in assets.⁽³⁾

SPHD’s yield-first construction means it skews toward income-heavy sectors, and a 52-stock portfolio is more concentrated than SPLV’s 100 holdings, so any single stock’s troubles carry more weight.

3. iShares MSCI USA Min Vol Factor ETF (USMV) — the other broad option

USMV takes a different mathematical approach: rather than just ranking individual stocks by past volatility, it tracks the MSCI USA Minimum Volatility Index, which models how stocks move together and optimizes for the lowest overall portfolio volatility.⁽⁴⁾ That distinction shows up in the numbers — USMV’s 30-day SEC yield of 1.31% as of October 2026 runs well below SPLV’s, reflecting a different mix of holdings even though both funds are chasing the same broad goal. It charges a 0.15% expense ratio and holds about $23.6 billion in assets, making it the largest fund on this list.⁽⁴⁾

USMV’s optimization approach can hold more shares in a wider range of sectors than SPLV, but it’s also a more complex, less transparent process than simply ranking stocks by their own individual volatility.

How the low volatility ETFs compare

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Finder Score	Available asset types	Stock trade fee	Minimum deposit	Cash sweep APY
Promoted 9 Excellent SoFi Active Invest	9 Excellent	Stocks, Options, Mutual funds, ETFs, Alternatives	$0	$0	0.01%	Limited time: Get up to $3,000 in stock when you open and fund a new account. Offer expires October 18, 2026. T&Cs apply. + Finder Rewards: Join Finder then open a new SoFi Active Invest account and make an Eligible First Deposit of $1,250 or more within 5 days of clicking the Finder link to receive a $150 digital Visa gift card. Ends 31 Oct 2026. T&Cs apply.	Trade stocks, ETFs, and options with zero commissions, invest in IPOs or automate your portfolio, with exclusive perks available through SoFi Plus.	Important information INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA (www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth's advisory operations, services, and fees is set forth in SoFi Wealth's current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. The probability of a member receiving $3,000 is 0.028%. If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Members must fund their account with a minimum of $50.00 to qualify. The probability percentage is subject to decrease. Members are only eligible for the Stock Award promotion upon opening their first brokerage account; subsequent cash brokerage accounts are ineligible for the promo, including for members with multiple accounts. Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions. Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers	$150 REWARD Go to site View details	loading
Promoted 9.4 Excellent Webull	9.4 Excellent	Stocks, Bonds, Options, ETFs, Futures, Money market funds	$0	$0	3.35%	Get 12 free shares by joining Webull. Select Go to site, then make a first deposit of $100 or more to get 10+2 free shares, each worth $3-$300, randomly drawn from the pool of NVDA, TSLA, SPCX and AAPL, minimum $36 in the pocket, plus 1-month complimentary Webull premium. T&Cs apply. + Finder Rewards: Yes, you get all this PLUS a $160 digital Visa gift card from Finder! T&Cs apply.	Trade stocks, ETFs and equity options commission-free, with access to futures, advanced charting tools, a robo-advisor and event trading powered by Kalshi.	Important information *Free shares will be validated in 10 days and no withdraw is allowed during this period. Partner deal only, sign up and join via non-affiliate link shall only receive 10 free shares	$160 REWARD Go to site View details	loading
Promoted 8.2 Great eToro	8.2 Great	Stocks, Options, ETFs, Cryptocurrency, Investments	$0	$0	3.25%	Get up to $500 in free assets plus up to $300 in crypto when you open, verify and fund a new account. Bonus amounts depend on your deposit. T&Cs apply. + Finder Rewards: Join Finder then open a new eToro account and deposit at least $300 into your account to receive a $200 digital Visa gift card. Ends 30 Oct 2026. T&Cs apply.	No commission stock, ETF and options trades, with 3.25% interest on your options account balance and no options contract fees. See full disclosure.	Important information eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finder is not an affiliate and may be compensated if you access certain products or services offered by the BD. eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation	$200 REWARD Go to site View details	loading
8.2 Great Zacks Trade	8.2 Great	Stocks, Bonds, Options, Mutual funds, ETFs, CDs	$0.01	$250	2.83%	Leverage powerful trading tools and low margin rates to trade stocks, options, ETFs, mutual funds and bonds.	Go to site View details	loading
9 Excellent Public.com	9 Excellent	Stocks, Bonds, Options, ETFs, Cryptocurrency, Treasury Bills, High-yield cash account	$0	$0	3.30%	Earn a 1% match on IRA contributions and rollovers. Must stay 5 years to avoid a clawback fee	Build a diversified portfolio of stocks, bonds, options, ETFs and crypto, with a high-yield cash account and options contract rebates.	Important information High-yield cash account 3.30% APY as of 06/11/2026.	Go to site View details	loading
8.4 Great J.P. Morgan Self-Directed Investing	8.4 Great	Stocks, Bonds, Options, Mutual funds, ETFs, Treasury Bills	$0	$0	0.01%	Get a cash bonus up to $1,000 when you open and fund a J.P. Morgan Self-Directed Investing account. T&Cs apply.	Get $0 commission online trades.	Important information INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE	Go to site View details	loading
9 Excellent Wealthfront	9 Excellent	Stocks, ETFs, High-yield cash account	$0	$500	3.30%	Get a $50 bonus when you sign up and fund a taxable automated investing account with at least $500. T&Cs apply.	Automate your stock and bond portfolio or trade individual stocks for as little as $1 apiece. Plus, earn 3.50% APY on your cash.	Go to site View details	loading
9 Excellent Moomoo	9 Excellent	Stocks, Options, ETFs, Cryptocurrency	$0	$0	3.35%	Up to $1,000 in Nvidia stock plus 8.1% APY on uninvested cash for 2 months, then it reverts to 3.35% APY. T&Cs apply.	No commission stock, ETF and options trades, with $0 equity options contract fees, low margin rates and advanced trading tools.	View details	loading
9.4 Excellent Robinhood	9.4 Excellent	Stocks, Options, ETFs, Cryptocurrency, Futures, Event contracts, High-yield cash account	$0	$0	3.60%	Trade stocks, options, crypto and more, with advanced trading tools, fractional shares and exclusive perks for Gold members.	View details	loading

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What is the Finder Score?

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Bottom line

A low volatility ETF trades some upside for a smoother ride, not a guaranteed better outcome — these funds can still lose money, and some have lagged the S&P 500 significantly during strong bull markets. Pick based on what you actually want: SPLV for a straightforward, rules-based ranking with no dividend focus, USMV for the largest fund and a different, correlation-based construction or SPHD if you want that lower-volatility approach paired with a high dividend yield specifically. For more on how dividend-focused funds compare, see our guide to bonds as another lower-volatility income option, or compare brokerage accounts if you’re ready to invest.

Frequently asked questions

• Do low volatility ETFs still lose money?

  Yes. These funds hold stocks, and stocks can fall even if they're historically less volatile than the broader market. "Low volatility" describes the size of the swings relative to the market, not a guarantee against losses.

• Is SPHD the same thing as a low volatility ETF like SPLV?

  Not exactly. SPHD screens for high dividend yield first, then narrows to the lowest-volatility stocks within that smaller group. SPLV screens the entire S&P 500 for volatility first, with no yield requirement at all. The two funds can end up with very different holdings.

• Do low volatility ETFs underperform in bull markets?

  They can. Because these funds emphasize stocks that move less, they often lag the S&P 500 during strong rallies, in the same way they're designed to fall less during downturns. The tradeoff runs in both directions, not just the downside.

To make sure you get accurate and helpful information, this guide has been edited by Richard Laycock as part of our fact-checking process.

Written by

Matt Miczulski

Investments editor and market analyst

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Matt Miczulski is an investments editor and market analyst at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions. Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on Yahoo Finance, CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio

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Matt has written 292 Finder guides across topics including:

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