Downside Capture Ratio

Downside Capture Ratio and Upside Capture is the percentage in which an investment participated in both the upside and downside of another benchmark investment.

The Down Capture and Up Capture of the benchmark is 100. If investment has Downside Capture of 80, it is participating in 80% of the downside of the market over a given period.

Downside Capture Ratio

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An investment with a Upside Capture of 50 has participated in only 50% of the upside of the market.

The most appropriate investments are those that participate in rising markets (that is have high Upside Capture), but have a strong history of not participating in falling markets (that is have Low Downside Capture).