First Trust Exchange Traded Etf Performance

The etf shows a Beta (market volatility) of -0.25, which means not very significant fluctuations relative to the market. As returns on the market increase, returns on owning First Trust are expected to decrease at a much lower rate. During the bear market, First Trust is likely to outperform the market.

Risk-Adjusted Performance

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Over the last 90 days First Trust Exchange Traded has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, First Trust is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders. ...more

First Trust Relative Risk vs. Return Landscape

If you would invest  2,215  in First Trust Exchange Traded on April 26, 2025 and sell it today you would earn a total of  180.00  from holding First Trust Exchange Traded or generate 8.13% return on investment over 90 days. First Trust Exchange Traded is currently generating 0.1283% in daily expected returns and assumes 0.6686% risk (volatility on return distribution) over the 90 days horizon. In different words, 5% of etfs are less volatile than First, and 98% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
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Given the investment horizon of 90 days First Trust is expected to generate 1.35 times less return on investment than the market. But when comparing it to its historical volatility, the company is 1.17 times less risky than the market. It trades about 0.19 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.22 of returns per unit of risk over similar time horizon.

First Trust Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for First Trust's investment risk. Standard deviation is the most common way to measure market volatility of etfs, such as First Trust Exchange Traded, and traders can use it to determine the average amount a First Trust's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.1919

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Estimated Market Risk

 0.67
  actual daily
6
94% of assets are more volatile

Expected Return

 0.13
  actual daily
2
98% of assets have higher returns

Risk-Adjusted Return

 0.19
  actual daily
15
85% of assets perform better
Based on monthly moving average First Trust is performing at about 15% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of First Trust by adding it to a well-diversified portfolio.

About First Trust Performance

By analyzing First Trust's fundamental ratios, stakeholders can gain valuable insights into First Trust's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if First Trust has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if First Trust has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.