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 the second quarter of 2024, the top-performing ETFs included Turkey equity funds Amundi MSCI Turkey (TUR) and iShares MSCI Turkey (IDTK). Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
To find the quarter's best-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 (£19.7 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. All returns are quoted in GBP.
Within our list, two funds fell into the Turkey equity category, where the average name rose 25.98% in the second quarter.
The 10 Best-Performing ETFs for Q2 2024
1. Amundi MSCI Turkey UCITS ETF (TUR)
2. iShares MSCI Turkey UCITS ETF (IDTK)
3. Amundi MSCI Semiconductors ESG Screened UCITS ETF (CHIP)
4. Invesco Technology S&P US Select Sector UCITS ETF (XLKS)
5. HSBC MSCI Taiwan UCITS Capped ETF (HTWD)
6. Global X Silver Miners UCITS ETF (SILV)
7. iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) (IUIT)
8. iShares MSCI Taiwan UCITS ETF (ITWN)
9. Xtrackers MSCI Taiwan UCITS ETF (XMTD)
10. Xtrackers MSCI USA Information Technology UCITS ETF (XUTC)
Metrics for the Best-Performing ETFs
Amundi MSCI Turkey UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.45%
• Morningstar Category: Turkey Equity
The £121 million Amundi MSCI Turkey was the best-performing ETF in the second quarter, with a 21.64% return. The passively managed Amundi ETF fell short of the 25.98% gain on the average fund in Morningstar’s Turkey equity category for the quarter. Over the last 12 months, Amundi MSCI Turkey has returned 65.06%, underperforming the 77.58% gain on the average fund in its category, leaving the ETF in the 53rd percentile.
Amundi MSCI Turkey has a Morningstar Medalist Rating of Neutral. It was launched in March 2019.
iShares MSCI Turkey UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 0.74%
• Morningstar Category: Turkey Equity
The second-best performing ETF in the second quarter was the £98 million iShares MSCI Turkey. The passively managed iShares ETF returned 21.19%, underperforming the average Turkey equity fund, which gained 25.98%. Looking back over the last 12 months, iShares MSCI Turkey has returned 61.70%, underperforming the 77.58% return on the average fund in its category, leaving the ETF in the 84th percentile.
iShares MSCI Turkey has a Negative Morningstar Medalist Rating.
Amundi MSCI Semiconductors ESG Screened UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The £371 million Amundi MSCI Semiconductors ESG Screened ranked third for the quarter, returning 17.90%. The Amundi ETF, which is passively managed, topped the 3.28% average return on funds in the equity technology category for the second quarter. Over the last 12 months, the Amundi ETF has returned 81.81%, ahead of the 23.07% gain on the average fund in its category, leaving the ETF in the first percentile.
Amundi MSCI Semiconductors ESG Screened takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Silver.
Invesco Technology S&P US Select Sector UCITS ETF
• Morningstar Rating: 5 stars
• Expense Ratio: 0.14%
• Morningstar Category: Equity Technology
With a 14.05% return, the £856 million Invesco Technology S&P US Select Sector ranked fourth in the quarter. The passively managed Invesco ETF outperformed the 3.28% return on the average equity technology fund. Over the last 12 months, the fund has gained 48.19%, ahead of the 23.07% return on funds in its category, placing it in the seventh percentile for the period.
Invesco Technology S&P US Select Sector has a Bronze Morningstar Medalist Rating. It was launched in December 2009.
HSBC MSCI Taiwan UCITS Capped ETF
• Morningstar Rating: 4 stars
• Expense Ratio: 0.50%
• Morningstar Category: Taiwan Large-Cap Equity
The fifth-best performing ETF was the £116 million HSBC MSCI Taiwan UCITS Capped ETF, which gained 13.76% in the second quarter. This passively managed HSBC ETF beat the 8.09% average return on funds in the Taiwan large-cap equity category. Over the past year, the ETF rose 35.81%, outperforming the 32.79% return on the average fund in its category and placing it in the 41st percentile.
The HSBC MSCI Taiwan UCITS Capped ETF, launched in March 2011, has a Morningstar Medalist Rating of Neutral.
Global X Silver Miners UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.70%
• Morningstar Category: Equity Precious Metals
The £66 million Global X Silver Miners was the sixth-best performing UK ETF in the second quarter, with a 13.75% return. The return on the passively managed Global X ETF topped the 7.49% gain on the average fund in Morningstar’s equity precious metals category. Looking back over the last 12 months, Global X Silver Miners has returned 19.20%, outperforming the 14.46% return on the average fund in its category, leaving the ETF in the 30th percentile.
The Negative-rated Global X Silver Miners was launched in May 2022.
iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc)
• Morningstar Rating: 5 stars
• Expense Ratio: 0.15%
• Morningstar Category: Equity Technology
The seventh-best performing ETF in the second quarter was the £6.8 billion iShares S&P 500 Information Technology Sector. The passively managed iShares ETF returned 13.74%, outperforming the average equity technology fund, which gained 3.28%. Looking back over the last 12 months, iShares S&P 500 Information Technology Sector has returned 43.04%, outperforming the 23.07% return on the average fund in its category, leaving the ETF in the 13th percentile.
iShares S&P 500 Information Technology Sector has a Morningstar Medalist Rating of Gold. It was launched in November 2015.
iShares MSCI Taiwan UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.74%
• Morningstar Category: Taiwan Large-Cap Equity
The £392 million iShares MSCI Taiwan ranked eighth for the quarter, returning 13.57%. The iShares ETF, which is passively managed, topped the 8.09% average gain on funds in the Taiwan large-cap equity category. Over the last 12 months, the iShares ETF has returned 34.87%, ahead of the 32.79% return on the average fund in its category, leaving it in the 37th percentile for performance.
The Bronze-rated iShares MSCI Taiwan was launched in October 2005.
Xtrackers MSCI Taiwan UCITS ETF
• Morningstar Rating: 4 stars
• Expense Ratio: 0.65%
• Morningstar Category: Taiwan Large-Cap Equity
With a 13.56% gain, the £91 million Xtrackers MSCI Taiwan ranked ninth in the second quarter. The passively managed Xtrackers ETF outperformed the 8.09% return on the average Taiwan large-cap equity fund. Over the last 12 months, the fund has returned 34.97%, ahead of the 32.79% return on funds in its category, placing it in the 48th percentile.
Xtrackers MSCI Taiwan, launched in June 2007, has a Morningstar Medalist Rating of Silver.
Xtrackers MSCI USA Information Technology UCITS ETF
• Morningstar Rating: 5 stars
• Expense Ratio: 0.12%
• Morningstar Category: Equity Technology
The tenth-best performing ETF was the £1.6 billion Xtrackers MSCI USA Information Technology, which gained 12.65% in the second quarter. The passively managed Xtrackers ETF beat the 3.28% average return on funds in the equity technology category. Over the past year, Xtrackers MSCI USA Information Technology rose 41.26%, outperforming the 23.07% return on the average fund in its category and placing it in the 16th percentile.
Xtrackers MSCI USA Information Technology has a Morningstar Medalist Rating of Silver. It was launched in September 2017.
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.
The Best ETFs: More Ideas to Consider
Investors who would like to find more of the top-performing or cheapest ETFs 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.
