When worries about economic growth and market volatility cause clients to ask repeatedly about risk management, advisers often turn the conversation to standard deviation. Funds that focus on this measure of variation, generally ensuring more stability, come at a price, at least in terms of forgone returns.
Of course, when it comes to investment returns, stability can be sexy, so we’ve gathered all the mutual funds with at least $500 million in assets and standard deviations of less than 3%. We list 20 funds ranked by three-year returns.
These options are not dirt cheap. Expense ratios ranged from about 50 to 100 basis points, and two funds were over the 1% mark. All data from Morningstar.