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Fund Spy

Keep an Eye on the Downside

Funds for the cautious investor.

Mentioned: , , , , , , , , ,

It's been quite a while since the last bear market. So this is a fine time to check in on fund downside--specifically, the downside capture ratio.

This measure tells you how much of an index's losses are captured by a fund. Say the S&P 500 loses 10%. A fund that lost 12.5% over the same period would have downside capture of 125%. One that lost 7.5% has downside capture of 75%.

Russel Kinnel has a position in the following securities mentioned above: DODIX. Find out about Morningstar’s editorial policies.