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