Exchange-traded funds, or ETFs, are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices in an attempt to beat the market. The best ones serve as building blocks for a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In January 2025, the worst performers included Market Access Stoxx China A Minimum Variance Index M9SV and Amundi MSCI India II INR. Data in this article is sourced from Morningstar Direct.
To read about the best-performing ETFs, check out our other story.
Screening for the Worst-Performing ETFs
To find the month’s worst-performing ETFs, we screened those in Morningstar’s equity, allocation, or fixed-income categories that are available in the UK. We excluded exchange-traded notes, known as ETNs, and ETFs with less than $25 million (£20.0 million) in total assets. We also excluded funds that fall into Morningstar’s “trading” categories, as these funds are designed for active traders and are not suitable for long-term investors.
Among the worst-performing ETFs, five were from the India equity category, where funds fell 5.32% in January.
The 10 Worst-Performing ETFs for January 2025
1. Market Access Stoxx China A Minimum Variance Index UCITS ETF M9SV
2. Amundi MSCI India II UCITS ETF INR
3. Amundi Index Solutions - Amundi MSCI India CI2
4. Xtrackers MSCI India Swap UCITS ETF XCS5
5. iShares MSCI India UCITS ETF NDIA
6. Xtrackers MSCI Thailand UCITS ETF XCS4
7. Franklin FTSE India UCITS ETF FLXI
8. SPDR MSCI Emerging Markets Small Cap UCITS ETF EMSD
9. iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) IUIT
10. Invesco Technology S&P US Select Sector UCITS ETF XLKS
Worst-Performing ETFs Available in the UK
Source: Morningstar Direct.
Metrics for the Worst-Performing ETFs
Market Access Stoxx China A Minimum Variance Index UCITS ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.45%
• Morningstar Category: China Equity - A Shares
The worst-performing ETF in January was the £28 million Market Access Stoxx China A Minimum Variance Index, which lost 3.01%. The passively managed Market Access Asset Management ETF fell further than the average 0.47% loss on funds in the China equity - a shares category in January. Over the past 12 months, Market Access Stoxx China A Minimum Variance Index rose 20.63%, placing it in the 59th percentile within its category and underperforming the 21.73% return on the average fund.
Market Access Stoxx China A Minimum Variance Index, launched in June 2018, has a Morningstar Medalist Rating of Silver.
Amundi MSCI India II UCITS ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.85%
• Morningstar Category: India Equity
With a 2.94% loss, the £1.1 billion Amundi MSCI India II was the second-worst performing ETF on our list for January. The passively managed Amundi ETF edged out the average 5.32% loss on funds in the India equity category. Over the past year, Amundi MSCI India II gained 5.65%, placing it in the 80th percentile within its category and underperforming the 6.96% return on the average fund.
The Neutral-rated Amundi MSCI India II was launched in November 2006.
Amundi MSCI India
• Morningstar Rating: ★★★
• Expense Ratio: 0.80%
• Morningstar Category: India Equity
The third-worst performing ETF in January was the £204 million Amundi MSCI India, which fell 2.90%. The Amundi ETF, which is passively managed, declined less than the average 5.32% loss on funds in the India equity category. Over the past 12 months, the ETF rose 5.92% to place in the 76th percentile within its category, underperforming the category’s average return of 6.96%.
Amundi MSCI India has a Morningstar Medalist Rating of Neutral. It was launched in April 2018.
Xtrackers MSCI India Swap UCITS ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.61%
• Morningstar Category: India Equity
The £241 million Xtrackers MSCI India Swap was the fourth-worst performing ETF in January, with a loss of 2.89%. The passively managed Xtrackers ETF performed better than the average 5.32% loss on funds in the India equity category. Over the past year, the ETF gained 6.28% to land in the 70th percentile within its category, roughly in line with the category’s average one-year return of 6.96%.
The Neutral-rated Xtrackers MSCI India Swap was launched in June 2010.
iShares MSCI India UCITS ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.65%
• Morningstar Category: India Equity
Fifth-worst was the £4.2 billion iShares MSCI India, which lost 2.85% in January. The passively managed iShares ETF declined less than the average 5.32% decline on funds in the India equity category. Over the past 12 months, iShares MSCI India rose 6.72%, finishing in the 53rd percentile within its category. It performed roughly in line with the category’s average return of 6.96%.
iShares MSCI India has a Morningstar Medalist Rating of Neutral. It was launched in May 2018.
Xtrackers MSCI Thailand UCITS ETF
• Morningstar Rating: ★★★★
• Expense Ratio: 0.54%
• Morningstar Category: Thailand Equity
The sixth-worst performing ETF in January was the £64 million Xtrackers MSCI Thailand, which lost 2.57%. The passively managed Xtrackers ETF performed roughly in line with the average 1.70% loss on funds in the Thailand equity category. Over the past year, Xtrackers MSCI Thailand rose 8.70%, placing it in the 20th percentile within its category and outperforming the 4.71% return on the average fund.
Xtrackers MSCI Thailand has a Morningstar Medalist Rating of Neutral. It was launched in June 2010.
Franklin FTSE India UCITS ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.19%
• Morningstar Category: India Equity
With a 2.52% loss, the £987 million Franklin FTSE India was the seventh-worst performing ETF on our list for January. The passively managed Franklin Templeton ETF dropped less than the average 5.32% loss on funds in the India equity category. Over the past 12 months, Franklin FTSE India gained 7.17%, placing it in the 48th percentile within its category and putting it roughly in line with the 6.96% return on the average fund.
Franklin FTSE India, launched in June 2019, has a Morningstar Medalist Rating of Bronze.
SPDR MSCI Emerging Markets Small Cap UCITS ETF
• Morningstar Rating: ★★★★
• Expense Ratio: 0.55%
• Morningstar Category: Global Emerging Markets Small/Mid-Cap Equity
The eighth-worst performing ETF in January was the £281 million SPDR MSCI Emerging Markets Small Cap, which fell 2.45%. The State Street ETF, which is passively managed, underperformed the average 0.41% gain on funds in the global emerging markets small/mid-cap equity category. Over the past year, the ETF rose 5.42% to place in the 74th percentile within its category, underperforming the average one-year return of 7.08%.
SPDR MSCI Emerging Markets Small Cap, launched in May 2011, has a Morningstar Medalist Rating of Neutral.
iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc)
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.15%
• Morningstar Category: Equity Technology
The £8.6 billion iShares S&P 500 Information Technology Sector was the ninth-worst performing ETF in January, with a decline of 1.70%. The passively managed iShares ETF performed worse than the average 4.49% gain on funds in the equity technology category. Over the past 12 months, the ETF gained 31.81% to land in the 34th percentile, outperforming the category’s average return of 28.31%.
iShares S&P 500 Information Technology Sector has a Morningstar Medalist Rating of Bronze. It was launched in November 2015.
Invesco Technology S&P US Select Sector UCITS ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.14%
• Morningstar Category: Equity Technology
Tenth-worst was the £1 billion Invesco Technology S&P US Select Sector, which lost 1.58% in January. The passively managed Invesco ETF underperformed the average 4.49% return on funds in the equity technology category for the month. Over the past year, Invesco Technology S&P US Select Sector rose 33.88%, finishing the 12-month period in the 25th percentile within the equity technology category. It outperformed the category’s average one-year return of 28.31%.
The Bronze-rated Invesco Technology S&P US Select Sector UCITS ETF was launched in December 2009.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.
ETFs: More Ideas to Consider
Investors who would like to find more ETF investment ideas can do the following:
• Read the latest articles on ETFs.
• Use the ETF screener to find the best ETFs according to your specific criteria. You can search for funds based on their fees, Morningstar Medalist Ratings, manager tenures, and more.
• Compare funds and ETFs side by side and easily follow their valuations, ratings, and fees.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
