Drawdown

Drawdown is a decline from a prior portfolio or security value peak to a subsequent lower value.

Why this matters to income investors

A fall in portfolio value can make withdrawals and reinvestment decisions harder.

How to use drawdown in your research

Look at the specific exposure and the period measured. Ask whether the risk could reduce cash income, force a sale, or cause several holdings to weaken together; a single summary statistic cannot answer that alone.

This material is general education and information, not individualized investment, tax, or legal advice.