Skip to main content

Exchange Traded Fund Outflow

Definition

An Exchange Traded Fund Outflow represents the net movement of capital exiting an Exchange Traded Fund. This occurs when investors sell their shares in the ETF, leading to a decrease in the fund’s assets under management. Outflows typically signal a reduction in investor confidence or a shift in market sentiment away from the assets held within that particular fund. This can influence the underlying asset prices as the fund may need to sell holdings to meet redemptions.