We’re just a few months into 2026, and the stock market is already on a roller coaster. The war in Iran, surging oil prices, and rising inflation are putting pressure on the economy and consumers. The CBOE Volatility Index, also called VIX, is up 73% since the beginning of the year, indicating that investors are nervous and expect more volatility ahead.
It’s impossible to avoid volatility completely when you’re invested in stocks, but you do have some good options if you want to stay in the market but reduce some of the biggest price swings. Here are three exchange-traded funds (ETFs) that can help you sidestep some of the turbulence.
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If your goal is to minimize volatility, the iShares MSCI U.S. Minimum Volatility Factor ETF (NYSEMKT: USMV) is the way to go. A stock’s volatility is measured by its beta, and the S&P 500 has a beta of 1. This fund has a beta of just 0.55, significantly lower than the broader market.
The fund aims to reduce your risk, so your portfolio has fewer price swings, and you’ll benefit from a low expense ratio of just 0.15%.
You’ll be invested in about 170 companies through the fund, including exposure to Waste Management, ExxonMobil, and Berkshire Hathaway. If you’re worried that you’ll miss out on some of the biggest trends with a minimal volatility fund, you can have both with this, as it’s also invested in AI leaders, including Nvidia and Microsoft.
Another ultra-low-volatility fund is the Invesco S&P 500 Low Volatility ETF (NYSEMKT: SPLV), which invests in the 100 S&P 500 stocks with the lowest volatility over the past 12 months. Your money will be spread across a wide range of sectors, including utilities, real estate, consumer goods, financial companies, and healthcare.
Diversity is an important part of this fund, but so is the fact that the companies you’ll be invested in are very low-volatility stocks, including Southern Co., Realty Income, and Johnson & Johnson. While its expense ratio of 0.25% is higher than the iShares MSCI U.S. Minimum Volatility Factor ETF’s expense ratio, it’s still lower than the industry average of about 0.34%.
Another angle to play among low-volatility stocks is to focus on companies that sell things that everyone buys all the time, no matter what’s happening with the economy. One of the best ways to do that is to own the State Street Consumer Staples Select Sector SPDR® ETF (NYSEMKT: XLP).