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 April 2024, the worst performers included VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP) and iShares Blockchain Technology UCITS ETF (BLKC). Data in this article is sourced from Morningstar Direct.
To read about the best-performing ETFs, check out our other story.
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 (£20.0 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, three were from the Indonesia equity category, where funds fell 7.23% in April.
The 10 Worst-Performing ETFs for April 2024
1. VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP)
2. iShares Blockchain Technology UCITS ETF (BLKC)
3. Invesco CoinShares Global Blockchain UCITS ETF (BCHN)
4. Invesco Solar Energy UCITS ETF (ISUN)
5. Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF (XS8R)
6. HSBC MSCI Indonesia UCITS ETF (HIDD)
7. Amundi MSCI Indonesia UCITS ETF (INDO)
8. Xtrackers MSCI Indonesia Swap UCITS ETF (XMIN)
9. Invesco Real Estate S&P US Select Sector UCITS ETF (XRES)
10. WisdomTree Cloud Computing UCITS ETF (WCLD)
Metrics for the Worst-Performing ETFs
VanEck Crypto & Blockchain Innovators UCITS ETF
• Morningstar Rating: N/A
• Ongoing Charge: 0.65%
• Morningstar Category: Equity Technology
The worst-performing ETF in April was the £93 million VanEck Crypto & Blockchain Innovators UCITS ETF, which lost 22.69%. The passively managed VanEck ETF fell further than the average 3.05% loss on funds in the equity technology category in April. Over the past 12 months, the VanEck Crypto & Blockchain Innovators UCITS ETF rose 66.74%, placing it in the 2nd percentile within its category and outperforming the 26.96% return on the average fund.
The VanEck Crypto & Blockchain Innovators UCITS ETF, launched in April 2021, has a Morningstar Medalist Rating of Bronze.
iShares Blockchain Technology UCITS ETF
• Morningstar Rating: N/A
• Ongoing Charge: 0.50%
• Morningstar Category: Equity Technology
With a 19.23% loss, the £35 million iShares Blockchain Technology UCITS ETF was the second-worst-performing ETF on our list for April. The passively managed iShares ETF fell further than the average 3.05% loss on funds in the equity technology category. Over the past 12 months, the iShares Blockchain Technology UCITS ETF gained 52.26%, placing it in the 7th percentile within its category and outperforming the 26.96% return on the average fund.
The Gold-rated iShares Blockchain Technology UCITS ETF was launched in September 2022.
Invesco CoinShares Global Blockchain UCITS ETF
• Morningstar Rating: ★★
• Ongoing Charge: 0.65%
• Morningstar Category: Equity Technology
The third-worst-performing ETF in April was the £460 million Invesco CoinShares Global Blockchain UCITS ETF, which fell 15.95%. The Invesco ETF, which is passively managed, fell further than the average 3.05% loss on funds in the equity technology category. Over the past 12 months, the ETF rose 39.67% to place in the 27th percentile within its category, outperforming the category's average 1-year return of 26.96%.
The Invesco CoinShares Global Blockchain UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in March 2019.
Invesco Solar Energy UCITS ETF
• Morningstar Rating: N/A
• Ongoing Charge: 0.69%
• Morningstar Category: Equity Alternative Energy
The £47 million Invesco Solar Energy UCITS ETF was the fourth-worst-performing ETF in April, with a loss of 9.55%. The passively managed Invesco ETF performed worse than the average 1.75% loss on funds in the equity alternative energy category. Over the past year, the ETF dropped 43.45% to land in the 100th percentile within its category, dropping further than the category's average one-year loss of 14.32%.
The Invesco Solar Energy UCITS ETF takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Neutral.
Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF
• Morningstar Rating: ★★★
• Ongoing Charge: 0.17%
• Morningstar Category: Equity Technology
Fifth-worst was the £41 million Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF, which lost 7.84% in April. The passively managed Xtrackers ETF fell further than the average 3.05% decline on funds in the equity technology category. Over the past year, the Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF rose 20.99%, finishing in the 67th percentile within its category. It underperformed the category's average one-year return of 26.96%.
The Xtrackers MSCI Europe Information Technology ESG Screened UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in June 2007.
HSBC MSCI Indonesia UCITS ETF
• Morningstar Rating: ★★★★★
• Ongoing Charge: 0.50%
• Morningstar Category: Indonesia Equity
The sixth-worst-performing ETF in April was the £72 million HSBC MSCI Indonesia UCITS ETF, which lost 7.78%. The passively managed HSBC ETF performed roughly in line with the average 7.23% loss on funds in the Indonesia equity category. Over the past 12 months, the HSBC MSCI Indonesia UCITS ETF fell 11.49%, placing it in the 52nd percentile within its category and declining less than the 12.71% loss on the average fund.
The HSBC MSCI Indonesia UCITS ETF has a Morningstar Medalist Rating of Silver. It was launched in March 2011.
Amundi MSCI Indonesia UCITS ETF
• Morningstar Rating: ★★★★★
• Ongoing Charge: 0.45%
• Morningstar Category: Indonesia Equity
With a 7.78% loss, the £44 million Amundi MSCI Indonesia UCITS ETF was the seventh-worst-performing ETF on our list for April. The passively managed Amundi ETF performed roughly in line with the average 7.23% loss on funds in the Indonesia equity category. Over the past 12 months, the Amundi MSCI Indonesia UCITS ETF lost 11.38%, placing it in the 65th percentile within its category and putting it down less than the 12.71% loss on the average fund.
The Amundi MSCI Indonesia UCITS ETF, launched in March 2019, has a Morningstar Medalist Rating of Gold.
Xtrackers MSCI Indonesia Swap UCITS ETF
• Morningstar Rating: ★★★★★
• Ongoing Charge: 0.65%
• Morningstar Category: Indonesia Equity
The eighth-worst-performing ETF in April was the £39 million Xtrackers MSCI Indonesia Swap UCITS ETF, which fell 7.77%. The Xtrackers ETF, which is passively managed, performed roughly in line with the average 7.23% loss on funds in the Indonesia equity category. Over the past 12 months, the ETF fell 11.55% to place in the 54th percentile within its category, declining less than the average one-year loss of 12.71%.
The Xtrackers MSCI Indonesia Swap UCITS ETF, launched in March 2010, has a Morningstar Medalist Rating of Silver.
Invesco Real Estate S&P US Select Sector UCITS ETF
• Morningstar Rating: ★★★★★
• Ongoing Charge: 0.14%
• Morningstar Category: Property - Indirect North America
The £64 million Invesco Real Estate S&P US Select Sector UCITS ETF was the ninth-worst-performing ETF in April, with a decline of 7.72%. The passively managed Invesco ETF performed worse than the average 4.95% loss on funds in the property - indirect North America category. Over the past year, the ETF dropped 0.97% to land in the 77th percentile, underperforming the category's average one-year return of 1.10%.
The Invesco Real Estate S&P US Select Sector UCITS ETF has a Morningstar Medalist Rating of Silver. It was launched in February 2016.
WisdomTree Cloud Computing UCITS ETF
• Morningstar Rating: ★
• Ongoing Charge: 0.40%
• Morningstar Category: Equity Technology
Tenth-worst was the £272 million WisdomTree Cloud Computing UCITS ETF, which lost 7.48% in April. The passively managed WisdomTree ETF fell further than the average 3.05% loss on funds in the equity technology category for the month. Over the past year, the WisdomTree Cloud Computing UCITS ETF rose 20.42%, finishing the 12-month period in the 68th percentile within the equity technology category. It underperformed the category's average one-year return of 26.96%.
The Bronze-rated WisdomTree Cloud Computing UCITS ETF was launched in September 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.
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.
