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 third quarter of 2024, the worst performers included iShares MSCI Turkey UCITS ETF IDTK and Amundi MSCI Turkey UCITS ETF TUR. 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 quarter'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 (£19.7 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.
Among the worst-performing ETFs, two were from the Turkey equity category, where funds fell 17.22% in the third quarter.
The 10 Worst-Performing ETFs for Q3 2024
1. iShares MSCI Turkey UCITS ETF IDTK
2. Amundi MSCI Turkey UCITS ETF TUR
3. HSBC NASDAQ Global Semiconductor UCITS ETF HNSS
4. iShares MSCI Global Semiconductors UCITS ETF SEMI
5. iShares Blockchain Technology UCITS ETF BLKC
6. Sprott Uranium Miners UCITS ETF Accumulating URNM
7. iShares Oil & Gas Exploration & Production UCITS ETF USD (Acc) IOGP
8. VanEck Semiconductor UCITS ETF SMH
9. SPDR MSCI Europe Energy UCITS ETF STN
10. iShares MSCI Europe Energy Sector UCITS ETF ESIE
Metrics for the Worst-Performing ETFs
iShares MSCI Turkey UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 0.74%
• Morningstar Category: Turkey Equity
The worst-performing ETF in the third quarter was the £77 million iShares MSCI Turkey, which lost 17.75%. The passively managed iShares ETF performed roughly in line with the average 17.22% loss on funds in the Turkey equity category in the third quarter. Over the past 12 months, iShares MSCI Turkey fell 3.57%, placing it in the 84th percentile within its category and underperforming the 2.66% return on the average fund.
iShares MSCI Turkey 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.
Amundi MSCI Turkey UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.45%
• Morningstar Category: Turkey Equity
With a 17.58% loss, the £94 million Amundi MSCI Turkey was the second-worst performing ETF on our list for the third quarter. The passively managed Amundi ETF performed roughly in line with the average 17.22% loss on funds in the Turkey equity category. Over the past 12 months, Amundi MSCI Turkey lost 1.91%, placing it in the 64th percentile within its category and underperforming the 2.66% return on the average fund.
The Neutral-rated Amundi MSCI Turkey was launched in March 2019.
HSBC NASDAQ Global Semiconductor UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The third-worst performing ETF in the third quarter was the £75 million HSBC NASDAQ Global Semiconductor, which fell 13.11%. The HSBC ETF, which is passively managed, fell further than the average 3.04% loss on funds in the equity technology category. Over the past 12 months, the ETF rose 37.93% to place in the ninth percentile within its category, outperforming the category's average 1-year return of 21.74%.
HSBC NASDAQ Global Semiconductor has a Morningstar Medalist Rating of Bronze. It was launched in January 2022.
iShares MSCI Global Semiconductors UCITS ETF
• Morningstar Rating: 4 stars
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The £978 million iShares MSCI Global Semiconductors was the fourth-worst performing ETF in the third quarter, with a loss of 12.87%. The passively managed iShares ETF performed worse than the average 3.04% loss on funds in the equity technology category. Over the past year, the ETF gained 34.66% to land in the 15th percentile within its category, outperforming the category's average one-year return of 21.74%.
iShares MSCI Global Semiconductors takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Gold.
iShares Blockchain Technology UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.49%
• Morningstar Category: Equity Technology
Fifth-worst was the £46 million iShares Blockchain Technology, which lost 12.56% in the third quarter. The passively managed iShares ETF fell further than the average 3.04% decline on funds in the equity technology category. Over the past year, iShares Blockchain Technology rose 68.43%, finishing in the third percentile within its category. It outperformed the category's average one-year return of 21.74%.
iShares Blockchain Technology has a Morningstar Medalist Rating of Gold. It was launched in September 2022.
Sprott Uranium Miners UCITS ETF Accumulating
• Morningstar Rating: N/A
• Expense Ratio: 0.85%
• Morningstar Category: Equity Natural Resources
The sixth-worst performing ETF in the third quarter was the £221 million Sprott Uranium Miners, which lost 12.17%. The passively managed HANetf ETF fell further than the average 0.92% loss on funds in the equity natural resources category. Over the past 12 months, Sprott Uranium Miners fell 8.00%, placing it in the 89th percentile within its category and underperforming the 1.43% return on the average fund.
Sprott Uranium Miners has a Morningstar Medalist Rating of Bronze. It was launched in May 2022.
iShares Oil & Gas Exploration & Production UCITS ETF USD (Acc)
• Morningstar Rating: 2 stars
• Expense Ratio: 0.55%
• Morningstar Category: Equity Energy
With a 12.03% loss, the £229 million iShares Oil & Gas Exploration & Production was the seventh-worst performing ETF on our list for the third quarter. The passively managed iShares ETF fell further than the average 6.04% loss on funds in the equity energy category. Over the past 12 months, iShares Oil & Gas Exploration & Production lost 13.18%, placing it in the 96th percentile within its category and putting it down further than the 4.32% loss on the average fund.
iShares Oil & Gas Exploration & Production, launched in September 2011, has a Morningstar Medalist Rating of Bronze.
VanEck Semiconductor UCITS ETF
• Morningstar Rating: 5 stars
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The eighth-worst performing ETF in the third quarter was the £2 billion VanEck Semiconductor, which fell 11.99%. The VanEck ETF, which is passively managed, fell further than the average 3.04% loss on funds in the equity technology category. Over the past 12 months, the ETF rose 43.72% to place in the sixth percentile within its category, outperforming the average one-year return of 21.74%.
VanEck Semiconductor, launched in December 2020, has a Morningstar Medalist Rating of Bronze.
SPDR MSCI Europe Energy UCITS ETF
• Morningstar Rating: 4 stars
• Expense Ratio: 0.18%
• Morningstar Category: Equity Energy
The £791 million SPDR MSCI Europe Energy was the ninth-worst performing ETF in the third quarter, with a decline of 11.97%. The passively managed State Street ETF performed worse than the average 6.04% loss on funds in the equity energy category. Over the past year, the ETF dropped 11.54% to land in the 87th percentile, falling further than the category's average one-year loss of 4.32%.
SPDR MSCI Europe Energy has a Morningstar Medalist Rating of Silver. It was launched in December 2014.
iShares MSCI Europe Energy Sector UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.18%
• Morningstar Category: Equity Energy
Tenth-worst was the £124 million iShares MSCI Europe Energy Sector, which lost 11.91% in the third quarter. The passively managed iShares ETF fell further than the average 6.04% loss on funds in the equity energy category for the quarter. Over the past year, iShares MSCI Europe Energy Sector fell 12.01%, finishing the 12-month period in the 92nd percentile within the equity energy category. It fell further than the category's average one-year loss of 4.32%.
The Silver-rated iShares MSCI Europe Energy 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.
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.
