AMERICAN FUNDS Sortino Ratio
| AAFTX Fund | | | USD 22.05 0.28 1.29% |
The Sortino Ratio measures risk-adjusted return using only downside deviation rather than total volatility. Unlike the Sharpe Ratio, which penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only returns below a target threshold, making it a more targeted measure of harmful volatility. Below is AMERICAN FUNDS's current Sortino Ratio with peer comparisons and related risk metrics.
Current Sortino Ratio Value
At 0.083, AMERICAN FUNDS's Sortino Ratio indicates its current reading on this measure. This reflects AMERICAN FUNDS's positioning relative to its own recent range within Mutual Fund Funds.
Sortino Ratio | = | ER[a] - ER[b]DD |
| = | 0.083 | |
| ER[a] | = | Expected return on investing in AMERICAN FUNDS |
| ER[b] | = | Expected return on market index or selected benchmark |
| DD | = | Downside Deviation |
Sortino Ratio Peers Comparison
The peer group averages 0.08 for Sortino Ratio, with AMERICAN FUNDS at 0.083 falling above that level. Readings span -0.0112 (Vanguard International Growth) to 0.1224 (Mfs Growth Fund). AMERICAN FUNDS's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Sortino Ratio Relative To Other Indicators
The chart below plots Sortino Ratio against Maximum Drawdown for American Funds and its peers. Each point represents one equity — position along the horizontal axis shows Sortino Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
AMERICAN FUNDS's Maximum Drawdown of
2.88 runs about
34.69 times its Sortino Ratio of
0.08 . This indicates Maximum Drawdown substantially exceeds Sortino Ratio for AMERICAN FUNDS.
Methodology, Assumptions & Data Sources
The current Sortino Ratio for AMERICAN FUNDS is 0.083. Sortino Ratio for AMERICAN FUNDS is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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