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Essential 40 Stock ETF (ESN) Sharpe Ratio: 2.84

ETF · Currency in USD · Last updated Jun 3, 2026

ESN is a passive ETF by KKM Financial tracking the investment results of the Essential 40 Stock Index. ESN launched on Jun 11, 2014 and has a 0.70% expense ratio.

ESN's Sharpe Ratio of 2.84 indicates that for each unit of volatility, it generates 2.84 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

ESN Sharpe Ratio Rank

ESN Sharpe Ratio Rank: 84.885
Exceptional

ESN ranks above 84.8% of all investments in our database based on Sharpe Ratio over the past 12 months, demonstrating exceptional risk-adjusted returns. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Suitable as a core holding given strong risk-adjusted returns
  • Monitor rank changes to detect deteriorating return-to-volatility profile
  • Exceptional Sharpe ratio supports larger position sizes
  • Compare with category peers to assess whether strength is investment-specific or category-wide

ESN Sharpe Ratio Market Positioning

The chart shows ESN's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.91 or lower
  • Yellow zone (middle 50%): 0.91 to 2.50
  • Green zone (top 25%): 2.50 or higher
  • Top 1%: 7.78+
  • Median: 1.77 — half of all investments score higher

How it compares to other similar ETFs

The table compares Essential 40 Stock ETF's Sharpe Ratio with other ETFs in the Large Cap Blend Equities category across multiple time periods, showing how ESN's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 3, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
RSSYReturn Stacked US Stocks & Futures Yield ETF3.77
IUSInvesco RAFI Strategic US ETF3.34
BLCRBlackrock Large Cap Core ETF3.14
UDIVFranklin U.S. Core Dividend Tilt Index ETF3.00
RAFEPIMCO RAFI ESG U.S. ETF2.93
PSCXPacer Swan SOS Conservative (December) ETF2.92
FTCEFirst Trust New Constructs Core Earnings Leaders ETF2.91
CNAVMohr Company Nav ETF2.90
EBILongview Advantage ETF2.90
ESNEssential 40 Stock ETF2.84

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows ESN's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when ESN consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does ESN fit in your portfolio?

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