Unknown Indicator
Information Ratio In A Nutshell
This begins the endeavor into the weeds of finding which investment is going to fit your current portfolio. Beyond benchmark performance, you want to keep in mind the expense ratio and other costs associated with the particular. Reading the information ratio is simple, the higher the number the better the product has done against the respective benchmark.
With the many different products out there, people are always asking how the particular fund is giving them an edge in the market. More specifically with ETF’s and mutual funds, many wonder how they are beating the benchmark and how often they are doing so. The information ratio seeks to give us an answer to this question by measuring how a portfolio fairs compared its respective benchmark.
Closer Look at Information Ratio
The number itself may not tell you the whole story so it is critical that you dig a little deeper. As an investor, you want to understand the risks and how the company is achieving outperformance. It could be from leveraging or other practices, so it is crucial that those align with your investing views.
Using the information ratio a reasonable way to begin narrowing your search for potential investments. You may also find that the sharp ratio is another effective way to find the appropriate portfolio to invest in. Pick apart the portfolio understanding the reason for the holdings and what is involved with the selection process. Also look at the track record of the manager and see if they have a history of success. All of these factors are important to consider when looking for a particular fund.
Other Indicators
All Technical Analysis
Trending Themes
If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.Business Services Invested over 100 shares | ||
Dividend Beast Invested over 60 shares | ||
Macroaxis Index Invested few shares | ||
Investor Favorites Invested over 40 shares | ||
FinTech Invested over 40 shares | ||
Chemicals Invested over 40 shares | ||
Momentum Invested few shares | ||
Synthetics Invested over 100 shares | ||
Chemicals Makers Invested over 500 shares |
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |