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
worst
performers
included
VanEck
Rare
Earth
and
Strategic
Metals
(REMX)
and
Xtrackers
MSCI
EM
Latin
America
ESG
Swap
(XMLA).
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
Latin
America
equity
category,
where
funds
fell
13.60%
in
the
second
quarter.
The
10
Worst-Performing
ETFs
for
Q2
2024
1.
VanEck
Rare
Earth
and
Strategic
Metals
UCITS
ETF
(REMX)
2.
Xtrackers
MSCI
EM
Latin
America
ESG
Swap
UCITS
ETF
(XMLA)
3.
Global
X
Lithium
&
Battery
Tech
UCITS
ETF
(LITU)
4.
iShares
MSCI
EM
Latin
America
UCITS
ETF
(DLTM)
5.
iShares
MSCI
Brazil
UCITS
ETF
USD
(Dist)
(IBZL)
6.
Amundi
MSCI
Indonesia
UCITS
ETF
(INDO)
7.
HSBC
MSCI
Indonesia
UCITS
ETF
(HIDD)
8.
Xtrackers
MSCI
Indonesia
Swap
UCITS
ETF
(XMIN)
9.
iShares
MSCI
Brazil
UCITS
ETF
(DE)
(4BRZ)
10.
Amundi
MSCI
Brazil
UCITS
ETF
(RIO)
Metrics
for
the
Worst-Performing
ETFs
VanEck
Rare
Earth
and
Strategic
Metals
UCITS
ETF
•
Morningstar
Rating:
N/A
•
Expense
Ratio:
0.59%
•
Morningstar
Category:
Equity
Precious
Metals
The
worst-performing
ETF
in
the
second
quarter
was
the
£62
million
VanEck
Rare
Earth
and
Strategic
Metals,
which
lost
16.88%.
The
passively
managed
VanEck
ETF
underperformed
the
average
7.49%
gain
on
funds
in
the
equity
precious
metals
category
in
the
second
quarter.
Over
the
past
12
months,
VanEck
Rare
Earth
and
Strategic
Metals
fell
48.61%,
placing
it
in
the
100th
percentile
within
its
category
and
underperforming
the
14.46%
return
on
the
average
fund.
VanEck
Rare
Earth
and
Strategic
Metals,
launched
in
September
2021,
has
a
Morningstar
Medalist
Rating
of
Neutral.
Xtrackers
MSCI
EM
Latin
America
ESG
Swap
UCITS
ETF
•
Morningstar
Rating:
2
stars
•
Expense
Ratio:
0.57%
•
Morningstar
Category:
Latin
America
Equity
With
a
15.50%
loss,
the
£80
million
Xtrackers
MSCI
EM
Latin
America
ESG
Swap
was
the
second-worst
performing
ETF
on
our
list
for
the
second
quarter.
The
passively
managed
Xtrackers
ETF
fell
further
than
the
average
13.60%
loss
on
funds
in
the
Latin
America
equity
category.
Over
the
past
12
months,
Xtrackers
MSCI
EM
Latin
America
ESG
Swap
lost
11.50%,
placing
it
in
the
90th
percentile
within
its
category
and
falling
further
than
the
7.62%
loss
on
the
average
fund.
Xtrackers
MSCI
EM
Latin
America
ESG
Swap
takes
environmental,
social,
and
governance
criteria
into
consideration.
This
fund
has
a
Morningstar
Medalist
Rating
of
Neutral.
Global
X
Lithium
&
Battery
Tech
UCITS
ETF
•
Morningstar
Rating:
N/A
•
Expense
Ratio:
0.60%
•
Morningstar
Category:
Equity
Natural
Resources
The
third-worst
performing
ETF
in
the
second
quarter
was
the
£25
million
Global
X
Lithium
&
Battery
Tech,
which
fell
13.70%.
The
Global
X
ETF,
which
is
passively
managed,
underperformed
the
average
0.73%
gain
on
funds
in
the
equity
natural
resources
category.
Over
the
past
12
months,
the
ETF
fell
38.62%
to
place
in
the
99th
percentile
within
its
category,
underperforming
the
category’s
average
1-year
return
of
6.47%.
Global
X
Lithium
&
Battery
Tech
has
a
Morningstar
Medalist
Rating
of
Bronze.
It
was
launched
in
December
2021.
iShares
MSCI
EM
Latin
America
UCITS
ETF
•
Morningstar
Rating:
4
stars
•
Expense
Ratio:
0.21%
•
Morningstar
Category:
Latin
America
Equity
The
£243
million
iShares
MSCI
EM
Latin
America
was
the
fourth-worst
performing
ETF
in
the
second
quarter,
with
a
loss
of
12.89%.
The
passively
managed
iShares
ETF
performed
roughly
in
line
with
the
average
13.60%
loss
on
funds
in
the
Latin
America
equity
category.
Over
the
past
year,
the
ETF
dropped
5.63%
to
land
in
the
27th
percentile
within
its
category,
dropping
less
than
the
category’s
average
one-year
loss
of
7.62%.
The
Gold-rated
iShares
MSCI
EM
Latin
America
was
launched
in
October
2007.
iShares
MSCI
Brazil
UCITS
ETF
USD
(Dist)
•
Morningstar
Rating:
3
stars
•
Expense
Ratio:
0.74%
•
Morningstar
Category:
Brazil
Equity
Fifth-worst
was
the
£183
million
iShares
MSCI
Brazil,
which
lost
12.63%
in
the
second
quarter.
The
passively
managed
iShares
ETF
performed
roughly
in
line
with
the
average
13.09%
decline
on
funds
in
the
Brazil
equity
category.
Over
the
past
year,
iShares
MSCI
Brazil
fell
8.44%,
finishing
in
the
47th
percentile
within
its
category.
It
edged
out
the
category’s
average
one-year
loss
of
10.58%.
iShares
MSCI
Brazil
has
a
Morningstar
Medalist
Rating
of
Bronze.
It
was
launched
in
November
2005.
Amundi
MSCI
Indonesia
UCITS
ETF
•
Morningstar
Rating:
5
stars
•
Expense
Ratio:
0.45%
•
Morningstar
Category:
Indonesia
Equity
The
sixth-worst
performing
ETF
in
the
second
quarter
was
the
£43
million
Amundi
MSCI
Indonesia,
which
lost
12.58%.
The
passively
managed
Amundi
ETF
performed
roughly
in
line
with
the
average
11.78%
loss
on
funds
in
the
Indonesia
equity
category.
Over
the
past
12
months,
Amundi
MSCI
Indonesia
fell
11.51%,
placing
it
in
the
49th
percentile
within
its
category
and
declining
less
than
the
14.15%
loss
on
the
average
fund.
Amundi
MSCI
Indonesia
has
a
Morningstar
Medalist
Rating
of
Gold.
It
was
launched
in
March
2019.
HSBC
MSCI
Indonesia
UCITS
ETF
•
Morningstar
Rating:
5
stars
•
Expense
Ratio:
0.50%
•
Morningstar
Category:
Indonesia
Equity
With
a
12.58%
loss,
the
£80
million
HSBC
MSCI
Indonesia
was
the
seventh-worst
performing
ETF
on
our
list
for
the
second
quarter.
The
passively
managed
HSBC
ETF
performed
roughly
in
line
with
the
average
11.78%
loss
on
funds
in
the
Indonesia
equity
category.
Over
the
past
12
months,
HSBC
MSCI
Indonesia
lost
11.87%,
placing
it
in
the
54th
percentile
within
its
category
and
putting
it
down
less
than
the
14.15%
loss
on
the
average
fund.
HSBC
MSCI
Indonesia,
launched
in
March
2011,
has
a
Morningstar
Medalist
Rating
of
Silver.
Xtrackers
MSCI
Indonesia
Swap
UCITS
ETF
•
Morningstar
Rating:
5
stars
•
Expense
Ratio:
0.65%
•
Morningstar
Category:
Indonesia
Equity
The
eighth-worst
performing
ETF
in
the
second
quarter
was
the
£35
million
Xtrackers
MSCI
Indonesia
Swap,
which
fell
12.57%.
The
Xtrackers
ETF,
which
is
passively
managed,
performed
roughly
in
line
with
the
average
11.78%
loss
on
funds
in
the
Indonesia
equity
category.
Over
the
past
12
months,
the
ETF
fell
11.96%
to
place
in
the
56th
percentile
within
its
category,
declining
less
than
the
average
one-year
loss
of
14.15%.
Xtrackers
MSCI
Indonesia
Swap,
launched
in
March
2010,
has
a
Morningstar
Medalist
Rating
of
Silver.
iShares
MSCI
Brazil
UCITS
ETF
(DE)
•
Morningstar
Rating:
4
stars
•
Expense
Ratio:
0.27%
•
Morningstar
Category:
Brazil
Equity
The
£2.1
billion
iShares
MSCI
Brazil
was
the
ninth-worst
performing
ETF
in
the
second
quarter,
with
a
decline
of
12.48%.
The
passively
managed
iShares
ETF
performed
roughly
in
line
with
the
average
13.09%
loss
on
funds
in
the
Brazil
equity
category.
Over
the
past
year,
the
ETF
dropped
7.66%
to
land
in
the
24th
percentile,
falling
less
than
the
category’s
average
one-year
loss
of
10.58%.
iShares
MSCI
Brazil
has
a
Morningstar
Medalist
Rating
of
Gold.
It
was
launched
in
October
2018.
Amundi
MSCI
Brazil
UCITS
ETF
•
Morningstar
Rating:
4
stars
•
Expense
Ratio:
0.65%
•
Morningstar
Category:
Brazil
Equity
Tenth-worst
was
the
£126
million
Amundi
MSCI
Brazil,
which
lost
12.42%
in
the
second
quarter.
The
passively
managed
Amundi
ETF
performed
roughly
in
line
with
the
average
13.09%
loss
on
funds
in
the
Brazil
equity
category
for
the
quarter.
Over
the
past
year,
Amundi
MSCI
Brazil
fell
7.70%,
finishing
the
12-month
period
in
the
18th
percentile
within
the
Brazil
equity
category.
It
edged
out
the
category’s
average
one-year
loss
of
10.58%.
The
Bronze-rated
Amundi
MSCI
Brazil
was
launched
in
March
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.
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.
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