American Funds Treynor Ratio
| FPPPX Fund | | | USD 9.47 0.01 0.11% |
The Treynor Ratio measures excess return per unit of systematic risk (beta) rather than total risk. It is calculated as (Portfolio Return - Risk-Free Rate) / Beta, isolating how well the asset compensates investors for market exposure that cannot be diversified away. Below is American Funds's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
With Treynor Ratio at
-0.24, American Funds shows negative return per unit of systematic risk. American Funds has not been compensated for the market risk it carries — systematic exposure has produced negative returns over the measured period.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | -0.24 | |
| ER[a] | = | Expected return on investing in American Funds |
| BETA | = | Beta coefficient between American Funds and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Among sector peers, American Funds's Treynor Ratio of -0.239 is below the 1.36 group average. The range runs from -0.3368 (Vanguard Short Term Bond) to 7.15 (Vanguard Short Term Bond). American Funds has earned less return per unit of systematic risk than the peer average.
Treynor Ratio Relative To Other Indicators
The chart below plots Treynor Ratio against Maximum Drawdown for American Funds and its peers. Each point represents one equity — position along the horizontal axis shows Treynor 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.
Compare American Funds to PeersMethodology, Assumptions & Data Sources
American Funds has a current Treynor Ratio reading of -0.24. Treynor Ratio for American Funds is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. American Funds operates in the short-term bond sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. 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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