Which holdings behave most defensively in downturns?
A risk question asks how much of a portfolio depends on one thing going right — a single position, a sector, a country. Concentration is read as a share of the total, which is what the figures below show.
Worked through on a sample portfolio. The figures below are that portfolio’s, not yours.
Here are the holdings that contribute least to portfolio volatility and therefore behave most defensively in downturns, sorted by their volatility contribution (lowest first):
| Asset | Volatility contribution (%) |
|---|---|
| Xtrackers MSCI USA UCITS ETF 1C | 2,48 |
| iShares Core MSCI EM IMI UCITS ETF USD (Acc) | 2,27 |
| Gold | 3,19 |
| SPDR MSCI USA Small Cap Value Weighted UCITS ETF | 3,96 |
| MasterCard Inc. | 5,40 |
What this shows:
- These five holdings make the smallest contributions to your portfolio’s annualized volatility and therefore tend to be comparatively more defensive during market downturns.
- The table uses each holding’s volatility contribution figure from the risk snapshot.
If you want, I can show the top contributors to volatility for contrast.
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See this for your own portfolio
The assistant answers the same question about your own holdings, with your figures and today’s prices. Import from your broker, or open the demo portfolio and ask it there.