American Funds Sortino Ratio
| FINFX Fund | | | USD 102.63 0.92 0.90% |
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
With Sortino Ratio at 0.1066, American Funds shows 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 |
| = | 0.1066 | |
| 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
American Funds falls above the 0.09 peer average for Sortino Ratio. American Funds Fundamental leads at 0.1058 while New Perspective Fund registers the lowest at 0.0276. 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
4.76 runs about
44.64 times its Sortino Ratio of
0.11 . This indicates Maximum Drawdown substantially exceeds Sortino Ratio for American Funds.
Methodology, Assumptions & Data Sources
American Funds has a current Sortino Ratio reading of 0.1066. This Sortino Ratio reading for American Funds results from applying the indicator's calculation rules to price and volume data over the selected window. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. American Funds operates in the large blend funds sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The output reflects the selected calculation window — changing the horizon will produce different readings. This fund metric is provided for analytical reference.
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