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 May 2024, the worst performers included WisdomTree Cybersecurity (WCBR) and Amundi MSCI Indonesia (INDO). Data in this article is sourced from Morningstar Direct.
To read about the best-performing ETFs, check out our other story.
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, three were from the Indonesia equity category, where funds fell 6.71% in May.
The 10 Worst-Performing ETFs for May 2024
1. WisdomTree Cybersecurity UCITS ETF (WCBR)
2. Amundi MSCI Indonesia UCITS ETF (INDO)
3. HSBC MSCI Indonesia UCITS ETF (HIDD)
4. Xtrackers MSCI Indonesia Swap UCITS ETF (XMIN)
5. iShares MSCI Brazil UCITS ETF USD (Dist) (IBZL)
6. iShares MSCI Brazil UCITS ETF (DE) (4BRZ)
7. Amundi MSCI Brazil UCITS ETF (RIO)
8. Xtrackers MSCI Brazil UCITS ETF (XMBD)
9. WisdomTree Cloud Computing UCITS ETF (WCLD)
10. Franklin FTSE Brazil UCITS ETF (FLXB)
Metrics for the Worst-Performing ETFs
WisdomTree Cybersecurity UCITS ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.45%
• Morningstar Category: Equity Technology
The worst-performing ETF in May was the £132 million WisdomTree Cybersecurity, which lost 8.05%. The passively managed WisdomTree ETF underperformed the average 2.59% gain on funds in the equity technology category in May. Over the past 12 months, WisdomTree Cybersecurity rose 13.13%, placing it in the 72nd percentile within its category and underperforming the 20.23% return on the average fund.
WisdomTree Cybersecurity, launched in January 2021, has a Morningstar Medalist Rating of Bronze.
Amundi MSCI Indonesia UCITS ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.45%
• Morningstar Category: Indonesia Equity
With an 8.01% loss, the £41 million Amundi MSCI Indonesia was the second-worst-performing ETF on our list for May. The passively managed Amundi ETF fell further than the average 6.71% loss on funds in the Indonesia equity category. Over the past 12 months, Amundi MSCI Indonesia lost 16.86%, placing it in the 58th percentile within its category and roughly in line with the 16.71% loss on the average fund.
The Gold-rated Amundi MSCI Indonesia was launched in March 2019.
HSBC MSCI Indonesia UCITS ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.50%
• Morningstar Category: Indonesia Equity
The third-worst-performing ETF in May was the £65 million HSBC MSCI Indonesia, which fell 8.00%. The HSBC ETF, which is passively managed, fell further than the average 6.71% loss on funds in the Indonesia equity category. Over the past 12 months, the ETF fell 16.91% to place in the 59th percentile within its category, roughly in line with the category's average 1-year loss of 16.71%.
The ETF has a Morningstar Medalist Rating of Silver. It was launched in March 2011.
Xtrackers MSCI Indonesia Swap UCITS ETF
• Morningstar Rating: ★★★★
• Expense Ratio: 0.65%
• Morningstar Category: Indonesia Equity
The £37 million Xtrackers MSCI Indonesia Swap was the fourth-worst-performing ETF in May, with a loss of 7.99%. The passively managed Xtrackers ETF performed worse than the average 6.71% loss on funds in the Indonesia equity category. Over the past year, the ETF dropped 16.99% to land in the 62nd percentile within its category, roughly in line with the category's average one-year loss of 16.71%.
The Silver-rated Xtrackers MSCI Indonesia Swap was launched in March 2010.
iShares MSCI Brazil UCITS ETF USD (Dist)
• Morningstar Rating: ★★★★
• Expense Ratio: 0.74%
• Morningstar Category: Brazil Equity
Fifth-worst was the £214 million iShares MSCI Brazil, which lost 6.67% in May. The passively managed iShares ETF fell further than the average 5.20% decline on funds in the Brazil equity category. Over the past year, iShares MSCI Brazil rose 6.82%, finishing in the 39th percentile within its category. It outperformed the category's average one-year return of 2.85%.
The iShares ETF has a Morningstar Medalist Rating of Bronze. It was launched in November 2005.
iShares MSCI Brazil UCITS ETF (DE)
• Morningstar Rating: ★★★★
• Expense Ratio: 0.27%
• Morningstar Category: Brazil Equity
The sixth-worst-performing ETF in May was the £2.1 billion iShares MSCI Brazil, which lost 6.65%. The passively managed iShares ETF fell further than the average 5.20% loss on funds in the Brazil equity category. Over the past 12 months, the ETF rose 7.77%, placing it in the 10th percentile within its category and outperforming the 2.85% return on the average fund.
The iShares MSCI Brazil UCITS ETF (DE) has a Morningstar Medalist Rating of Gold. It was launched in October 2018.
Amundi MSCI Brazil UCITS ETF
• Morningstar Rating: ★★★★
• Expense Ratio: 0.65%
• Morningstar Category: Brazil Equity
With a 6.65% loss, the £130 million Amundi MSCI Brazil was the seventh-worst-performing ETF on our list for May. The passively managed Amundi ETF fell further than the average 5.20% loss on funds in the Brazil equity category. Over the past 12 months, Amundi MSCI Brazil gained 7.58%, placing it in the 16th percentile within its category and outperforming the 2.85% return on the average fund.
The ETF, launched in March 2019, has a Morningstar Medalist Rating of Bronze.
Xtrackers MSCI Brazil UCITS ETF
• Morningstar Rating: ★★★★
• Expense Ratio: 0.25%
• Morningstar Category: Brazil Equity
The eighth-worst-performing ETF in May was the £53 million Xtrackers MSCI Brazil, which fell 6.62%. The Xtrackers ETF, which is passively managed, fell further than the average 5.20% loss on funds in the Brazil equity category. Over the past 12 months, the ETF rose 7.57% to place in the 21st percentile within its category, outperforming the average one-year return of 2.85%.
The Xtrackers MSCI Brazil, launched in June 2007, has a Morningstar Medalist Rating of Gold.
WisdomTree Cloud Computing UCITS ETF
• Morningstar Rating: ★
• Expense Ratio: 0.40%
• Morningstar Category: Equity Technology
The £251 million WisdomTree Cloud Computing was the ninth-worst-performing ETF in May, with a decline of 6.28%. The passively managed WisdomTree ETF performed worse than the average 2.59% gain on funds in the equity technology category. Over the past year, the ETF dropped 2.63% to land in the 92nd percentile, underperforming the category's average one-year return of 20.23%.
The WisdomTree Cloud Computing has a Morningstar Medalist Rating of Bronze. It was launched in September 2019.
Franklin FTSE Brazil UCITS ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.19%
• Morningstar Category: Brazil Equity
Tenth-worst was the £23 million Franklin FTSE Brazil, which lost 5.49% in May. The passively managed Franklin Templeton ETF performed roughly in line with the average 5.20% loss on funds in the Brazil equity category for the month. Over the past year, Franklin FTSE Brazil rose 8.82%, finishing the 12-month period in the 32nd percentile within the Brazil equity category. It outperformed the category's average one-year return of 2.85%.
The Neutral-rated Franklin FTSE Brazil was launched in June 2019.
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.
As part of our mission to put more information into the hands of investors, this article was compiled from Morningstar’s data and independent research using automation technology. The original article was written by Morningstar reporters and editors. This updated version was reviewed by an editor.
