Earlier this year, the low volatility factor and related ETFs shined bright as investors fretted about macroeconomic data and trade tariffs. The July jobs report, which was released August 1, could reignite those fears, possibly bring funds such as the Invesco QQQ Low Volatility ETF (QQLV) back into the limelight.
The combination of new tariffs and weak July employment data sank stocks on the first day of August. The latter was so bad that President Trump fired Dr. Erika McEntarfer, the commissioner of the Bureau of Labor Statistics. Those are among the reasons ETFs such as QQLV could again be appealing to investors.
One day doesn’t a trend make, but QQLV did its job in a turbulent August 1 trading session. The ETF declined just 0.26%, while the Nasdaq-100 Index (NDX) — the gauge from which QQLV draws its components — slumped almost 2%. That could be one sign QQLV is ready to offer investors protection if stocks retreat in the near term.
Some Top Low Vol Stocks Reside in QQLV
QQLV is home to the 25 NDX members with the lowest trailing 12-month volatility. But even with that requirement, the ETF has returned an admirable 7% year-to-date. Plus, Wall Street analysts love some of its holdings. That group includes PepsiCo (PEP), QQLV’s third-largest component.
Last month, the beverage and snacks giant reported estimate-beating second-quarter earnings per share and sales. CEO Ramon Laguarta added the company is likely to beat its goal of 4%-6% organic revenue growth over the next several quarters. Amgen (AMGN), one of two healthcare stocks held by QQLV, is also favored by some analysts on the basis of rising revenue for Evenity, Repatha, and Tezspire.
The lone materials name found in QQLV, Linde (LIN), a stock that commands 4.67% of the fund’s roster, also has some fans on the sell-side.
“Linde plc (NASDAQ:LIN) ranks among the best low volatility stocks to buy according to analysts. Linde plc (NASDAQ:LIN) announced on June 23 that it had agreed to a long-term contract to supply industrial gases to Blue Point Number One’s low-carbon ammonia facility in Ascension Parish, Louisiana,” according to Insider Monkey.
Costco Wholesale (COST), 3.59% of QQLV’s roster and one of seven consumer staples names found in the ETF, also has plenty of analyst support.
The warehouse retailer “ranks among the best low volatility stocks to buy according to analysts. William Blair reaffirmed its Outperform rating on Costco Wholesale Corporation (NASDAQ:COST) on July 10 as the company announced monthly sales of $26.4 billion for June 2025, an 8.0% year-over-year increase,” noted Insider Monkey.
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