Skip to content
Jan 08 2021

The Relationship Between ETF Fund Flow & Future Returns

  • Jan 8, 2021

In April 2018, armed with a large number of ETFs and long-enough historical data, we applied our back-testing methodology for individual stocks to the universe of ETFs to determine if the same (or some) of those components could useful for assessing ETF performance prospects. One of the factors we reviewed was fund flow (adjusted by AUM), which revealed that those ETFs experiencing the largest asset inflows proceeded to significantly underperform.


For full access, please enter your credentials.

About The Author

Jun Zhu / Sr. Research Analyst & Co-Portfolio Manager