First Trust Information Ratio
| LMBS ETF | | | USD 49.99 0.14 0.28% |
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
The Information Ratio of
-0.10 for First Trust indicates slight underperformance relative to the benchmark on a risk-adjusted basis. The negative value indicates First Trust has not kept pace with its benchmark after accounting for tracking error.
INFOR | = | ER[a] - ER[b]STD[a] |
| = | -0.10 | |
Information Ratio Peers Comparison
The peer group averages 0.04 for Information Ratio, with First Trust at -0.101 falling below that level. Readings span -0.0721 (Janus Henderson Mortgage Backed) to 0.1005 (Fidelity Covington Trust). 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.
Compare First Trust to PeersMethodology, Assumptions & Data Sources
First Trust has a current Information Ratio reading of -0.10. The Information Ratio for First Trust applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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