IN PLAIN ENGLISH
How much extra return the fund has earned for each unit of bumpiness. Higher means more reward for the risk taken; below 0 means it did worse than cash.
FULL DEFINITION
A fund's return above the risk-free rate, divided by the volatility of its returns, over the last three years.
EXAMPLE
A Sharpe ratio of 1.36 means the fund earned 1.36 percentage points more than cash for every point of volatility.
HOW IT'S CALCULATED
Not calculated by the app. Sharpe ratio = (fund return − risk-free return) ÷ standard deviation of the fund's returns, over three years, as published by the market data provider. Hidden when the provider has none.
Educational content only. It is not personal financial advice.