VANGUARD TARGET Treynor Ratio
| VTTHX Fund | | | USD 29.33 0.41 1.42% |
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 VANGUARD TARGET's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
VANGUARD TARGET registers a Treynor Ratio of 0.1133, reflecting positive return per unit of systematic risk. VANGUARD TARGET has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.1133 | |
| ER[a] | = | Expected return on investing in VANGUARD TARGET |
| BETA | = | Beta coefficient between VANGUARD TARGET and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
VANGUARD TARGET falls below the 0.12 peer average for Treynor Ratio. Vanguard Target Retirement leads at 0.1232 while Vanguard Target Retirement registers the lowest at 0.096. VANGUARD TARGET 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 Vanguard Target 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.
VANGUARD TARGET's Maximum Drawdown of
3.11 runs about
27.41 times its Treynor Ratio of
0.11 . This indicates Maximum Drawdown substantially exceeds Treynor Ratio for VANGUARD TARGET.
Methodology, Assumptions & Data Sources
VANGUARD TARGET has a current Treynor Ratio reading of 0.1133. The Treynor Ratio for VANGUARD TARGET is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. VANGUARD TARGET operates in the target risk funds sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The output reflects the selected calculation window — changing the horizon will produce different readings. This fund metric is provided for analytical reference.
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