Zombie ETF

A zombie ETF refers to exchange traded funds that are seeing little trading volume or increased investment. These funds are described as zombies because they aren’t growing and are likely to be cut by the issuer. In other words, the ETF may be dead already and just not know it. ETFs are like many financial instruments, in that a lack of new capital flowing in and/or trading volume in the shares can be a bad sign. The liquidity concerns with the low trading volume scares investors away even as the costs of administering a fund that isn’t attracting new capital inflows erodes profitability for the issuing firm.