First Trust Treynor Ratio
| KNGZ ETF | | | 39.46 0.20 0.51% |
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 First Trust's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
At
-0.78, First Trust exhibits negative return per unit of systematic risk in Treynor Ratio. First Trust 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 |
| = | -0.78 | |
| ER[a] | = | Expected return on investing in First Trust |
| BETA | = | Beta coefficient between First Trust and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
First Trust falls below the -0.45 peer average for Treynor Ratio. Global X MLP leads at 0.9106 while IDX Dynamic Fixed registers the lowest at -1.6552. First Trust 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 First Trust 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 First Trust to PeersMethodology, Assumptions & Data Sources
First Trust has a current Treynor Ratio reading of -0.78. The Treynor Ratio for First Trust applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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