IShares Technology Total Risk Alpha
| IYW ETF | | | USD 217.17 5.61 2.65% |
Total Risk Alpha measures the excess return of an asset after comparing its performance to a benchmark portfolio matched to the same total risk level. Unlike Jensen Alpha, which adjusts for systematic risk (beta) only, Total Risk Alpha accounts for total volatility. Below is IShares Technology's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
IShares Technology has a Total Risk Alpha of 0.151, indicating positive alpha — return above what market exposure alone would predict. IShares Technology has generated modest excess return beyond what its systematic risk exposure explains.
Total Risk Alpha | = | RFR + (ER[b] - ER[a]) | x | STD[a] / STD[b] |
| = | 0.151 | |
| ER[a] | = | Expected return on investing in IShares Technology |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on IShares Technology |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
IShares Technology falls above the 0.06 peer average for Total Risk Alpha. iShares MSCI USA leads at 0.1493 while iShares Russell Mid Cap registers the lowest at -0.0384. IShares Technology has generated more excess return relative to its market exposure than the peer group average.
Total Risk Alpha Relative To Other Indicators
The chart below plots Total Risk Alpha against Maximum Drawdown for IShares Technology and its peers. Each point represents one equity — position along the horizontal axis shows Total Risk Alpha 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.
IShares Technology produces
45.03 in Maximum Drawdown for each unit of Total Risk Alpha, with respective readings of
6.80 and
0.15 . This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for IShares Technology.
Methodology, Assumptions & Data Sources
The current Total Risk Alpha for IShares Technology is 0.151. The Total Risk Alpha for IShares Technology is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. 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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