Assets Under Management (AUM) Definition

Learn the definition of assets under management (AUM) and other ETF terminology from the etf.com glossary.

ETF
|
Reviewed by: etf.com Staff
,
Edited by: etf.com Staff

Learn more about Assets Under Management (AUM)

"Assets under management" (AUM) refers to the total value of assets that an ETF manages on behalf of its investors. AUM is a key indicator of the size of an ETF. Larger AUM may indicate a more established or popular fund, as it suggests that more investors are participating in the fund. AUM is an important consideration for investors when choosing an ETF, as those with higher assets tend to be more liquid and have lower expense ratios. In other words, a larger AUM indicates that an ETF is more well-established and has a larger pool of assets to draw upon. This can make it easier for investors to buy and sell shares of the ETF, and it can also help to create economies of scale, which can reduce the overall operating costs of the fund.

Related Terms

Exchange-Traded Fund (ETF), Liquidity, Expense Ratio

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.