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 funds, all ETFs are traded throughout the day on an exchange.
In August 2024, the top-performing ETFs included Indonesia equity funds Xtrackers MSCI Indonesia Swap UCITS ETF (XMIN) and Amundi MSCI Indonesia UCITS ETF (INDO). Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
To find the month’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 (£19.5 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.
Within our list, three funds fell into the Indonesia equity category, where the average name rose 6.61% in August.
The 10 Best-Performing ETFs for August 2024:
1. Xtrackers MSCI Indonesia Swap UCITS ETF (XMIN)
2. Amundi MSCI Indonesia UCITS ETF (INDO)
3. HSBC MSCI Indonesia UCITS ETF (HIDD)
4. Xtrackers MSCI Thailand UCITS ETF (XCS4)
5. iShares European Property Yield UCITS ETF (IPRP)
6. SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF (ZPRP)
7. iShares US Medical Devices UCITS ETF (UMDV)
8. Xtrackers S&P Select Frontier Swap UCITS ETF (XSFD)
9. BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped (EEE)
10. VanEck Global Real Estate UCITS ETF (TRET)
Metrics for the Best-Performing ETFs
Xtrackers MSCI Indonesia Swap UCITS ETF
• Morningstar Rating: 4 stars
• Expense Ratio: 0.65%
• Morningstar Category: Indonesia Equity
The £39 million Xtrackers MSCI Indonesia Swap was the best-performing ETF in August, with a 7.34% return. The passively managed Xtrackers ETF performed roughly in line with the 6.61% gain on the average fund in Morningstar’s Indonesia equity category for the month. Over the last 12 months, Xtrackers MSCI Indonesia Swap has lost 3.64%, dropping less than the 7.02% loss on the average fund in its category, leaving the ETF in the 26th percentile.
Xtrackers MSCI Indonesia Swap has a Morningstar Medalist Rating of Silver. It was launched in March 2010.
Amundi MSCI Indonesia UCITS ETF
• Morningstar Rating: 5 stars
• Expense Ratio: 0.45%
• Morningstar Category: Indonesia Equity
The second-best performing ETF in August was the £44 million Amundi MSCI Indonesia. The passively managed Amundi ETF returned 7.33%, roughly in line with the average Indonesia equity fund, which gained 6.61%. Looking back over the last 12 months, Amundi MSCI Indonesia has fallen 3.56%, falling less than the 7.02% loss on the average fund in its category, leaving the ETF in the 24th percentile.
The Gold-rated Amundi MSCI Indonesia was launched in March 2019.
HSBC MSCI Indonesia UCITS ETF
• Morningstar Rating: 5 stars
• Expense Ratio: 0.50%
• Morningstar Category: Indonesia Equity
The £105 million HSBC MSCI Indonesia ranked third for the month, returning 7.23%. The HSBC ETF, which is passively managed, performed roughly in line with the 6.61% average return on funds in the Indonesia equity category for August. Over the last 12 months, the ETF has fallen 3.64%, ahead of the 7.02% loss on the average fund in its category, leaving the ETF in the 25th percentile.
HSBC MSCI Indonesia, launched in March 2011, has a Morningstar Medalist Rating of Silver.
Xtrackers MSCI Thailand UCITS ETF
• Morningstar Rating: 4 stars
• Expense Ratio: 0.54%
• Morningstar Category: Thailand Equity
With a 6.74% return, the £67 million Xtrackers MSCI Thailand ranked fourth in August. The passively managed Xtrackers ETF outperformed the 5.39% return on the average Thailand equity fund. Over the last 12 months, the fund has dropped 8.38%, dropped less than the 12.46% decline on funds in its category, placing it in the 20th percentile for the period.
Xtrackers MSCI Thailand has a Silver Morningstar Medalist Rating. It was launched in June 2010.
iShares European Property Yield UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.06%
• Morningstar Category: Property - Indirect Europe
The fifth-best performing ETF was the £1.4 billion iShares European Property Yield, which gained 5.71% in August. This passively managed iShares ETF beat the 2.65% average return on funds in the property - indirect Europe category. Over the past year, the iShares European Property Yield rose 22.12%, outperforming the 17.20% return on the average fund in its category and placing it in the 11th percentile.
iShares European Property Yield, launched in November 2005, has a Morningstar Medalist Rating of Neutral.
SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.30%
• Morningstar Category: Property - Indirect Europe
The £89 million SPDR FTSE EPRA Europe ex UK Real Estate was the sixth-best performing UK ETF in August, with a 5.66% return. The return on the passively managed State Street ETF topped the 2.65% gain on the average fund in Morningstar’s property - indirect Europe category. Looking back over the last 12 months, it has returned 22.71%, outperforming the 17.20% return on the average fund in its category, leaving the ETF in the eighth percentile.
The Neutral-rated SPDR FTSE EPRA Europe ex UK Real Estate was launched in August 2015.
iShares US Medical Devices UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.25%
• Morningstar Category: Equity Healthcare
The seventh-best performing ETF in August was the £149 million iShares US Medical Devices. The passively managed iShares ETF returned 5.21%, outperforming the average equity healthcare fund, which gained 1.75%. Looking back over the last 12 months, iShares US Medical Devices has returned 10.31%, outperforming the 8.76% return on the average fund in its category, leaving the ETF in the 59th percentile.
iShares US Medical Devices has a Morningstar Medalist Rating of Silver. It was launched in August 2020.
Xtrackers S&P Select Frontier Swap UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 2.75%
• Morningstar Category: Global Frontier Markets Equity
The £69 million Xtrackers S&P Select Frontier Swap ranked eighth for the month, returning 5.09%. The Xtrackers ETF, which is passively managed, topped the 0.77% average gain on funds in the global frontier markets equity category. Over the last 12 months, the Xtrackers ETF has returned 5.29%, behind the 13.41% return on the average fund in its category, leaving it in the 86th percentile for performance.
The Neutral-rated Xtrackers S&P Select Frontier Swap was launched in January 2008.
BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped
• Morningstar Rating: 3 stars
• Expense Ratio: 0.41%
• Morningstar Category: Property - Indirect Eurozone
With a 5.03% gain, the £278 million BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped ranked ninth in August. The passively managed BNP Paribas ETF outperformed the 3.09% return on the average property - indirect Eurozone fund. Over the last 12 months, the fund has returned 16.86%, ahead of the 14.83% return on funds in its category, placing it in the 57th percentile.
BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped, launched in July 2004, has a Morningstar Medalist Rating of Neutral.
VanEck Global Real Estate UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.25%
• Morningstar Category: Property - Indirect Global
The tenth-best performing ETF was the £244 million VanEck Global Real Estate, which gained 4.41% in August. The passively managed VanEck ETF beat the 2.42% average return on funds in the property - indirect global category. Over the past year, the VanEck Global Real Estate rose 17.53%, outperforming the 12.15% return on the average fund in its category and placing it in the fifth percentile.
VanEck Global Real Estate has a Morningstar Medalist Rating of Bronze. It was launched in April 2011.
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.
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.
