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Fidelity Investments: Low-Volatility Stocks Provide Downside Protection

Donna Fuscaldo

With volatility in the stock market not going away any time soon, investors may want to consider low-volatility investing to provide downside protection. While getting more conservative in your investment portfolio during times of increased volatility is an option, Nielson said that can often lead to lower returns than investing in equities that are less volatile. The Fidelity executive noted that, with low-volatility investing, you do get lower returns, but if the investments are constructed properly, it provides downside protection.