First Trust Information Ratio
| FJAN ETF | | | USD 54.33 0.39 0.72% |
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
At 0.0977, First Trust exhibits positive but modest excess return per unit of tracking risk in Information Ratio. First Trust has outperformed its benchmark, though the margin is limited relative to the tracking error incurred.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | 0.0977 | |
Information Ratio Peers Comparison
The peer group averages 0.11 for Information Ratio, with First Trust at 0.0977 falling below that level. Readings span 0.0816 (First Trust Exchange Traded) to 0.2393 (FT Cboe Vest). First Trust's risk-adjusted return trails the peer average, indicating less efficient compensation for the risk incurred.
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.
First Trust shows nearly
26.61 of Maximum Drawdown per unit of Information Ratio (
0.10 versus
2.60 ). This indicates Maximum Drawdown substantially exceeds Information Ratio for First Trust.
Methodology, Assumptions & Data Sources
The current Information Ratio for First Trust is 0.0977. First Trust's Information Ratio is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for 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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