A Study on Impact of Macro Economic Factors on ETFs Performance

Abstract: This study explores the influence of major macro-economic factors on the performance of Exchange-Traded Funds (ETFs), which are increasingly favored by investors for their diversification, affordability, and market accessibility. Adopting a quantitative research methodology, the analysis covers historical data from 2015 to 2025, focusing on key economic indicators such as GDP growth, inflation rate, and the repo rate. The primary objective is to assess how these variables affect the returns of ETFs, with particular emphasis on Nifty 50 and Gold ETFs. Statistical techniques like correlation and regression are employed to evaluate the strength and direction of these relationships. The results indicate that macro-economic variables-especially inflation and interest rates-have a significant impact on ETF performance. By offering insights into how economic shifts affect market behavior, this study aims to assist investors in making informed, data-driven investment decisions in an ever-evolving financial landscape.

Keywords: ETFs, Macro-Economic Factors, GDP, Inflation, Repo Rate, Nifty 50, Gold ETF