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 October 2024, the worst performers included Xtrackers MSCI Europe Information Technology ESG Screened XS8R and iShares Global Clean Energy INRG. 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 (£19.2 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, four were from the property - indirect Europe category, where funds fell 5.26% in October.
The 10 Worst-Performing ETFs for October 2024
1. Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF XS8R
2. iShares Global Clean Energy UCITS ETF INRG
3. Amundi Index Solutions - Amundi FTSE EPRA Europe Real Estate EPRE
4. Xtrackers FTSE Developed Europe Real Estate UCITS ETF D5BK
5. iShares STOXX Europe 600 Technology UCITS ETF (DE) EXV3
6. iShares STOXX Europe 600 Real Estate UCITS ETF (DE) EXI5
7. SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF ZPRP
8. Xtrackers MSCI Europe Consumer Staples ESG Screened UCITS ETF DXSK
9. SPDR MSCI Europe Technology UCITS ETF STK
10. iShares MSCI Europe Information Technology Sector UCITS ETF ESIT
Worst-Performing ETFs Available in the UK
Source: Morningstar Direct
Metrics for the Worst-Performing ETFs
Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.17%
• Morningstar Category: Equity Technology
The worst-performing ETF in October was the £32 million Xtrackers MSCI Europe Information Technology ESG Screened, which lost 8.69%. The passively managed Xtrackers ETF underperformed the average 4.58% gain on funds in the equity technology category in October. Over the past 12 months, Xtrackers MSCI Europe Information Technology ESG Screened rose 6.74%, placing it in the 96th percentile within its category and underperforming the 32.76% return on the average fund.
Xtrackers MSCI Europe Information Technology ESG Screened takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Bronze.
iShares Global Clean Energy UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.65%
• Morningstar Category: Equity Alternative Energy
With a 7.22% loss, the £2.1 billion iShares Global Clean Energy was the second-worst performing ETF on our list for October. The passively managed iShares ETF fell further than the average 1.66% loss on funds in the equity alternative energy category. Over the past 12 months, iShares Global Clean Energy lost 3.93%, placing it in the 82nd percentile within its category and underperforming the 8.05% return on the average fund.
The Neutral-rated iShares Global Clean Energy was launched in July 2007.
Amundi Index Solutions - Amundi FTSE EPRA Europe Real Estate
• Morningstar Rating: 2 stars
• Expense Ratio: 0.30%
• Morningstar Category: Property - Indirect Europe
The third-worst performing ETF in October was the £65 million Amundi FTSE EPRA Europe Real Estate, which fell 6.88%. The Amundi ETF, which is passively managed, fell further than the average 5.26% loss on funds in the property - indirect Europe category. Over the past 12 months, the ETF rose 22.25% to place in the 53rd percentile within its category, roughly in line with the category’s average 1-year return of 21.29%.
Amundi FTSE EPRA Europe Real Estate has a Morningstar Medalist Rating of Neutral. It was launched in January 2018.
Xtrackers FTSE Developed Europe Real Estate UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.33%
• Morningstar Category: Property - Indirect Europe
The £688 million Xtrackers FTSE Developed Europe Real Estate was the fourth-worst performing ETF in October, with a loss of 6.88%. The passively managed Xtrackers ETF performed worse than the average 5.26% loss on funds in the property - indirect Europe category. Over the past year, the ETF gained 22.29% to land in the 52nd percentile within its category, outperforming the category’s average one-year return of 21.29%.
The Silver-rated Xtrackers FTSE Developed Europe Real Estate was launched in March 2010.
iShares STOXX Europe 600 Technology UCITS ETF (DE)
• Morningstar Rating: 2 stars
• Expense Ratio: 0.46%
• Morningstar Category: Equity Technology
Fifth-worst was the £172 million iShares STOXX Europe 600 Technology, which lost 6.77% in October. The passively managed iShares ETF fell short of the average 4.58% return on funds in the equity technology category. Over the past year, iShares STOXX Europe 600 Technology rose 15.35%, finishing in the 84th percentile within its category. It underperformed the category’s average one-year return of 32.76%.
iShares STOXX Europe 600 Technology has a Morningstar Medalist Rating of Bronze. It was launched in April 2001.
iShares STOXX Europe 600 Real Estate UCITS ETF (DE)
• Morningstar Rating: 2 stars
• Expense Ratio: 0.51%
• Morningstar Category: Property - Indirect Europe
The sixth-worst performing ETF in October was the £88 million iShares STOXX Europe 600 Real Estate, which lost 6.51%. The passively managed iShares ETF fell further than the average 5.26% loss on funds in the property - indirect Europe category. Over the past 12 months, iShares STOXX Europe 600 Real Estate rose 23.73%, placing it in the 33rd percentile within its category and outperforming the 21.29% return on the average fund.
iShares STOXX Europe 600 Real Estate has a Negative Morningstar Medalist Rating, meaning that our analysts expect it to be one of the worst performers within its category and think it is unlikely to deliver positive returns after fees.
SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.30%
• Morningstar Category: Property - Indirect Europe
With a 6.46% loss, the £84 million SPDR FTSE EPRA Europe ex UK Real Estate was the seventh-worst performing ETF on our list for October. The passively managed State Street ETF fell further than the average 5.26% loss on funds in the property - indirect Europe category. Over the past 12 months, the SPDR FTSE EPRA Europe ex UK Real Estate gained 24.96%, placing it in the 17th percentile within its category and outperforming the 21.29% return on the average fund.
SPDR FTSE EPRA Europe ex UK Real Estate, launched in August 2015, has a Morningstar Medalist Rating of Neutral.
Xtrackers MSCI Europe Consumer Staples ESG Screened UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.17%
• Morningstar Category: Equity Consumer Goods & Services
The eighth-worst performing ETF in October was the £48 million Xtrackers MSCI Europe Consumer Staples ESG Screened, which fell 6.29%. The Xtrackers ETF, which is passively managed, underperformed the average 0.35% gain on funds in the equity consumer goods & services category. Over the past 12 months, the ETF fell 7.41% to place in the 100th percentile within its category, underperforming the average one-year return of 13.81%.
Xtrackers MSCI Europe Consumer Staples ESG Screened, launched in July 2007, has a Morningstar Medalist Rating of Neutral.
SPDR MSCI Europe Technology UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.18%
• Morningstar Category: Equity Technology
The £69 million SPDR MSCI Europe Technology was the ninth-worst performing ETF in October, with a decline of 6.22%. The passively managed State Street ETF performed worse than the average 4.58% gain on funds in the equity technology category. Over the past year, the ETF gained 17.01% to land in the 83rd percentile, underperforming the category’s average one-year return of 32.76%.
SPDR MSCI Europe Technology has a Morningstar Medalist Rating of Bronze. It was launched in December 2014.
iShares MSCI Europe Information Technology Sector UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.18%
• Morningstar Category: Equity Technology
Tenth-worst was the £482 million iShares MSCI Europe Information Technology Sector, which lost 6.00% in October. The passively managed iShares ETF underperformed the average 4.58% return on funds in the equity technology category for the month. Over the past year, iShares MSCI Europe Information Technology Sector rose 16.27%, finishing the 12-month period in the 83rd percentile within the equity technology category. It underperformed the category’s average one-year return of 32.76%.
The Bronze-rated iShares MSCI Europe Information Technology Sector was launched in November 2020.
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.
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.
