6 Top Low-Risk Investments To Make In 2026

Why Low-Risk Investing Matters In 2026

Less than halfway through the year, 2026 has already produced several market-moving shocks. The U.S. and Israel launched a joint attack against Iran, disrupting a key marine transport route and pushing crude oil prices above $100. As the conflict continues, inflation and recession risks rise, in the U.S. and abroad. Meanwhile, the U.S. and China are maneuvering to exert control over global manufacturing. The Trump administration wants to reduce dependence on Chinese manufacturing, while China is implementing regulations to keep Western factories from relocating.

These developments could lead to major economic disruptions. And when economic turbulence is on the horizon, it’s the right time to:

1. Evaluate the risk in your portfolio, and
2. Start monitoring the Fear and Greed Index

Exposure to stable assets allows you to stay invested through volatile periods by stabilizing your portfolio’s value and providing liquidity.

What Are Some Examples Of Low-Risk Investments?

Risk is partly a function of value stability. Low-risk investments hold their value better than riskier ones. Cash is the lowest risk investment in nominal terms because its value doesn’t change. The purchasing power of the dollar may decline, but $1 remains $1—it doesn’t fall to $0.50 the way a stock share might.

Examples of low-risk investments, ranging from safest to riskiest, include cash and cash equivalents, investment-grade fixed income funds and some low-volatility stock funds.

6 Top Low-Risk Investment Picks For 2026

Six of the top low-risk investments to consider this year are:

1. High-yield savings account
2. Money market account
3. Certificates of deposit
4. I bonds
5. Short-term bond ETFs
6. Dividend Aristocrats ETFs.

The table below introduces these assets, and a more in-depth discussion of each follows.

High-Yield Savings Account (HYSA)

HYSAs function like regular cash savings accounts, except they pay higher interest rates. HYSAs pay 3% or more currently, which is almost 10 times more than the national average savings deposit rate of 0.38%. Like regular savings accounts, HYSA deposits with accredited banks carry FDIC insurance up to $250,000. Deposits with credit unions are similarly insured by the NCUA.

HYSAs are accessible and highly liquid. If you have an emergency savings account—and you should—keeping it in an HYSA over a traditional savings account provides higher income and better protection against inflation-related loss of purchasing power. You can typically access HYSA funds easily through bank transfers.

Money Market Account

Money market accounts are another form of cash deposit that pays a higher-than-average interest rate. While some money market accounts pay rates competitive with HYSAs, the national average is 0.57%. These accounts are typically offered by insured traditional banks and credit unions.

Money market accounts include check-writing features, which can be a convenient way to access your funds. Steer clear of accounts that charge maintenance fees and have minimum balance requirements.

Certificates of Deposit (CDs)

CDs are fixed-rate, cash investments. They can pay competitive interest rates, but issuers require you to keep the cash invested for a set term. Terms can generally range from several months to five years. If you “break” the CD by withdrawing funds early, you are charged a penalty. The best CD rates are about 4% currently, for terms from nine months to 13 months. There may be minimum deposit requirements, depending on the issuer.

CDs deliver higher-than-average income on cash deposits, but they are less liquid than an HYSA. You can build in liquidity by implementing a CD ladder, basically a series of CDs that mature every two or four weeks. The ladder structure minimizes incurring penalties because you had to break a CD to access your cash.

I Bonds

Series I bonds are interest-earning savings instruments issued and backed by the U.S. government. These Treasury bonds pay a combined interest rate that includes a fixed portion and an inflation component. I bonds issued between May 1, 2026 and October 31, 2026, pay 4.26%.

The trade-off for the inflation protection is lower liquidity. You cannot redeem your I bonds in the first 12 months. If you don’t hold your I bonds for at least five years, you forfeit three months of interest. Also, you can only buy $10,000 worth of I bonds in a calendar year. While these restrictions are limiting, the I bond is appealing for its inflation-indexed rate and safety.

Short-Term Bond ETFs

Short-term bond ETFs primarily invest in investment-grade debts with maturities of three years or less. Issuers include the U.S. Treasury, corporations and government-sponsored entities like Fannie Mae. If you are interested in buying T-bills, an ETF is an easy way to do it.

Fixed-income securities provide income and stability. Short-term fixed income assets have the added perk of being less price-sensitive to interest-rate changes versus longer durations. And, while default risk on investment-grade bonds is already low, a diversified ETF spreads it across many issuers.

Dividend Aristocrat ETFs

Funds like the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) invest in S&P 500 companies that have increased their dividends annually for at least 25 consecutive years.

NOBL and similar funds provide relatively reliable income and low volatility compared to the overall stock market. NOBL’s SEC 30-day yield is 2.26% and the fund’s beta, a volatility measure, is nearly 30% lower than the overall stock market. Popular ETFs like this one are also very liquid. Note that continued dividend increases are not guaranteed, and the fund can lose value.

How To Choose The Right Low-Risk Strategy For You

Your financial needs, risk tolerance and investing timeline should guide your low-risk strategy. HYSAs are the most versatile choice, but they offer no inflation protection. I bonds have strong inflation protection alongside withdrawal and deposit limitations. Dividend Aristocrat ETFs have upside plus rising income to offset inflation, but they can also lose value quickly.

Many investors balance these pros and cons by mixing-and-matching assets. You might hold your emergency funds in an HYSA, invest $10,000 in I bonds for inflation purposes, and additionally buy a dividend ETF for long-term, low-volatility growth potential.

The best low-risk investments provide stability and income, but some can lack inflation protection. Even so, safer assets do complement higher volatility positions. They can provide the foundation that allows you to stay invested when the stock market or the economy takes a negative turn.