First Trust Information Ratio
| AFMC ETF | | | USD 39.12 0.24 0.62% |
The Information Ratio measures excess return (alpha) per unit of tracking error relative to a benchmark. Unlike the Sharpe Ratio, which uses total volatility, the Information Ratio isolates only the variability of the alpha component — the return attributable to active decisions rather than passive market exposure. Below is First Trust's current Information Ratio with peer comparisons and related risk metrics.
Current Information Ratio Value
First Trust has a Information Ratio of 0.1086, indicating positive but modest excess return per unit of tracking risk. First Trust has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.1086 | |
Information Ratio Peers Comparison
First Trust falls above the 0.08 peer average for Information Ratio. VictoryShares leads at 0.2607 while iShares MSCI BIC registers the lowest at -0.0344. First Trust's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Information Ratio Relative To Other Indicators
The chart below plots Information Ratio against Maximum Drawdown for First Trust and its peers. Each point represents one equity — position along the horizontal axis shows Information 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.
With Information Ratio at
0.11 and Maximum Drawdown at
4.69 , First Trust shows a
43.21 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Information Ratio for First Trust.
Methodology, Assumptions & Data Sources
First Trust has a current Information Ratio reading of 0.1086. The Information Ratio for First Trust is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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