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 August 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.
Screening for the Worst-Performing ETFs
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 (£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.
Among the worst-performing ETFs, two were from the Turkey equity category, where funds fell 12.19% in August.
The 10 Worst-Performing ETFs for August 2024:
1. VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP)
2. iShares Blockchain Technology UCITS ETF (BLKC)
3. Sprott Uranium Miners UCITS ETF Accumulating (URNM)
4. iShares MSCI Turkey UCITS ETF (IDTK)
5. Amundi MSCI Turkey UCITS ETF (TUR)
6. Global X Uranium UCITS ETF (URNU)
7. Invesco CoinShares Global Blockchain UCITS ETF (BCHN)
8. Global X Silver Miners UCITS ETF (SILV)
9. Rize USA Environmental Impact UCITS ETF (LUSA)
10. KraneShares CSI China Internet ETF USD (KWEB)
Metrics for the Worst-Performing ETFs
VanEck Crypto & Blockchain Innovators UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 0.65%
• Morningstar Category: Equity Technology
The worst-performing ETF in August was the £110 million VanEck Crypto & Blockchain Innovators, which lost 15.27%. The passively managed VanEck ETF fell further than the average 1.26% loss on funds in the equity technology category in August. Over the past 12 months, VanEck Crypto & Blockchain Innovators rose 56.61%, placing it in the first percentile within its category and outperforming the 15.90% return on the average fund.
VanEck Crypto & Blockchain Innovators, launched in April 2021, has a Morningstar Medalist Rating of Bronze.
iShares Blockchain Technology UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.49%
• Morningstar Category: Equity Technology
With a 15.12% loss, the £42 million iShares Blockchain Technology was the second-worst performing ETF on our list for August. The passively managed iShares ETF fell further than the average 1.26% loss on funds in the equity technology category. Over the past 12 months, iShares Blockchain Technology gained 48.18%, placing it in the second percentile within its category and outperforming the 15.90% return on the average fund.
The Gold-rated iShares Blockchain Technology 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 third-worst performing ETF in August was the £191 million Sprott Uranium Miners, which fell 12.27%. The HANetf ETF, which is passively managed, fell further than the average 2.96% loss on funds in the equity natural resources category. Over the past 12 months, the ETF rose 8.56% to place in the 14th percentile within its category, outperforming the category’s average 1-year return of 0.42%.
Sprott Uranium Miners has a Morningstar Medalist Rating of Bronze. It was launched in May 2022.
iShares MSCI Turkey UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 0.74%
• Morningstar Category: Turkey Equity
The £85 million iShares MSCI Turkey was the fourth-worst performing ETF in August, with a loss of 12.17%. The passively managed iShares ETF performed roughly in line with the average 12.19% loss on funds in the Turkey equity category. Over the past year, the ETF gained 7.09% to land in the 67th percentile within its category, underperforming the category’s average one-year return of 12.13%.
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
Fifth-worst was the £105 million Amundi MSCI Turkey, which lost 12.08% in August. The passively managed Amundi ETF performed roughly in line with the average 12.19% decline on funds in the Turkey equity category. Over the past year, Amundi MSCI Turkey rose 9.06%, finishing in the 36th percentile within its category. It underperformed the category’s average one-year return of 12.13%.
Amundi MSCI Turkey has a Morningstar Medalist Rating of Neutral. It was launched in March 2019.
Global X Uranium UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.70%
• Morningstar Category: Equity Natural Resources
The sixth-worst performing ETF in August was the £105 million Global X Uranium, which lost 11.09%. The passively managed Global X ETF fell further than the average 2.96% loss on funds in the equity natural resources category. Over the past 12 months, Global X Uranium rose 9.38%, placing it in the 11th percentile within its category and outperforming the 0.42% return on the average fund.
Global X Uranium has a Morningstar Medalist Rating of Silver. It was launched in April 2022.
Invesco CoinShares Global Blockchain UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.65%
• Morningstar Category: Equity Technology
With a 9.41% loss, the £413 million Invesco CoinShares Global Blockchain was the seventh-worst performing ETF on our list for August. The passively managed Invesco ETF fell further than the average 1.26% loss on funds in the equity technology category. Over the past 12 months, Invesco CoinShares Global Blockchain gained 37.65%, placing it in the sixth percentile within its category and outperforming the 15.90% return on the average fund.
Invesco CoinShares Global Blockchain, launched in March 2019, has a Morningstar Medalist Rating of Bronze.
Global X Silver Miners UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.70%
• Morningstar Category: Equity Precious Metals
The eighth-worst performing ETF in August was the £69 million Global X Silver Miners, which fell 7.26%. The Global X ETF, which is passively managed, underperformed the average 0.45% gain on funds in the equity precious metals category. Over the past 12 months, the ETF rose 14.97% to place in the 82nd percentile within its category, underperforming the average one-year return of 23.64%.
Global X Silver Miners, launched in May 2022, has a Morningstar Medalist Rating of Negative.
Rize USA Environmental Impact UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.45%
• Morningstar Category: US Large-Cap Blend Equity
The £75 million Rize USA Environmental Impact was the ninth-worst performing ETF in August, with a decline of 5.60%. The passively managed Davy ETF performed worse than the average 0.74% loss on funds in the US large-cap-cap blend equity category. Over the past year, the ETF dropped 5.02% to land in the 100th percentile, underperforming the category’s average one-year return of 19.09%.
Rize USA Environmental Impact takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Bronze.
KraneShares CSI China Internet ETF USD
• Morningstar Rating: 1 star
• Expense Ratio: 0.75%
• Morningstar Category: Equity Technology
Tenth-worst was the £297 million KraneShares CSI China Internet, which lost 5.30% in August. The passively managed Waystone Management ETF fell further than the average 1.26% loss on funds in the equity technology category for the month. Over the past year, the KraneShares CSI China Internet ETF USD fell 11.27%, finishing the 12-month period in the 92nd percentile within the equity technology category. It underperformed the category’s average one-year return of 15.90%.
The Bronze-rated KraneShares CSI China Internet was launched in November 2018.
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.