A fund that holds its ground when everything else is falling is what true portfolio diversification feels like.
During a recent market storm in 2026, the S&P 500 fell 8.9%, and that familiar knot formed in the pit of many investors’ stomachs. But one fund, the Harbor Commodity All-Weather Strategy ETF (HGER), returned +12.9% over the same period. This is a commodity fund, an exchange-traded fund designed to give investors exposure to a basket of real assets, and it has a history of marching to its own beat, especially when stocks are in retreat.
How Did It Hold Up When Stocks Dropped?
A fund’s true defensive character is revealed in a selloff. HGER’s record here is consistent. Across the last 3 S&P 500 drawdowns, the fund held up in 3 of them. The contrast can be stark. The showcase was that 2026 selloff, where the S&P 500’s 8.9% drop was met with a +12.9% gain from HGER. But its resilience showed up in deeper downturns, too. In a 2025 selloff when the S&P 500 fell 18.8%, HGER’s return was -7.5%, cushioning the blow significantly. And in a 2024 selloff, the S&P 500 fell 8.4% while HGER returned -4.1%. In each case, it provided a valuable buffer against the market’s decline.
What Kind Of Shield Is This?
This isn’t a fund of steadier stocks. It’s a move into a different asset class altogether. HGER seeks to build a “diverse portfolio of commodities, specifically targeting those most responsive to U.S. consumer price inflation.” By holding commodity futures, it offers a portfolio anchor that is largely uncorrelated with the stock market. This is a crisis and inflation hedge. That separation comes with its own rhythm. Over the past year, HGER has run at about 18% annualized volatility, compared to about 13% for the S&P 500. It’s not necessarily a calmer ride, but it is a different one.
Is The Defense Guaranteed?
No defense is. While HGER’s recent record is clean, holding up in every one of the last three significant S&P 500 drawdowns, that history is not a promise. Even the most reliable defender can have a bad spell. The past is a guide to a fund’s behavior, not a guarantee of its future performance. The value is in understanding how it has behaved, not in assuming it will always do so.
The Real Question For Your Portfolio
With stocks under pressure, the useful question isn’t about predicting the next market move. It’s about looking at what you own right now. Does everything fall in unison, or do you own something that can genuinely cushion a drop? HGER is one example of an asset that has provided that cushion, moving to the distinct logic of commodities when equities were falling. Whether that kind of diversification fits your long-term plan is the central question.
Which Funds Hold Up The Best?
Knowing HGER held up is a start, but it raises the sharper question: is it the best at this, or does another fund cushion a selloff even more for less of a trade-off? That is worth checking before you lean on any single defender.
Our Drawdown Defenders screen answers it directly. It ranks the funds that held up across the recent S&P 500 selloffs by how far they beat the S&P during those drops, how many of the selloffs each one defended, and what they have actually returned since, with annualized return, volatility, Sharpe and Sortino all measured over the same stretch. It leans toward the defenders that kept their upside too, not just the funds that sat out the drop, so you can see where HGER sits and which funds protected without giving up as much. For the wider picture on valuation and long-run performance, the ETF Valuation and Performance Scorecard ranks the major funds side by side.
A Fund Is Only Part Of Your Portfolio, Check The Rest
A fund is just one piece of what you own, and the same scrutiny applies to every other position in your portfolio. How much damage any single position could do to your net worth is a question with a precise answer. The Trefis Wealth team computes it for investors professionally, with the same rules-based systematic discipline that runs our High Quality Portfolio. Request a free vulnerability audit of your biggest positions.
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