Worst-Performing Stock ETFs for the Month

Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones serve as low-cost building blocks in 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 ARK Innovation ETF ARKK and Renaissance IPO ETF IPO. Data in this article is sourced from Morningstar Direct.

You can also read about the month’s best-performing ETFs.

Screening for the Worst-Performing ETFs

To find the month’s worst-performing stock ETFs, we screened the ones in the Morningstar US Equity category that trade within the United States. We excluded exchange-traded notes and ETFs with less than $100 million in total assets.

The 10 Worst-Performing ETFs for April 2024

1. ARK Innovation ETF ARKK
2. Renaissance IPO ETF IPO
3. Direxion HCM Tactical Enhanced US Equity Strategy ETF HCMT
4. Invesco Dorsey Wright SmallCap Momentum ETF DWAS
5. IQ Candriam US Mid Cap Equity ETF IQSM
6. Invesco S&P SmallCap 600 Pure Value ETF RZV
7. Congress SMID Growth ETF CSMD
8. Invesco S&P MidCap 400 Pure Value ETF RFV
9. Harbor Human Capital Factor US Small Cap ETF HAPS
10. Invesco S&P SmallCap 600 Revenue ETF RWJ

Metrics for the Worst-Performing Stock ETFs

ARK Innovation ETF

• Morningstar Rating: 1 star
• Expense Ratio: 0.75%
• Morningstar Category: Mid-Cap Growth

The worst-performing ETF in April was the $6.4 billion ARK Innovation ETF, which lost 13.13%. The actively managed ARK ETF fell further than the average 6.35% loss on funds in the mid-cap growth category in April. Over the past 12 months, the ARK Innovation ETF rose 21.16%, placing it in the 25th percentile within its category and outperforming the 17.47% return on the average fund.

The ARK Innovation ETF has a Negative Morningstar Medalist Rating, meaning 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.

Renaissance IPO ETF

• Morningstar Rating: 1 star
• Expense Ratio: 0.60%
• Morningstar Category: Mid-Cap Growth

With a 10.37% loss, the $167 million Renaissance IPO ETF was the second-worst-performing ETF on our list for April. The passively managed Renaissance Capital ETF fell further than the average 6.35% loss on funds in the mid-cap growth category. Over the past 12 months, the Renaissance IPO ETF gained 33.91%, placing it in the 2nd percentile within its category and outperforming the 17.47% return on the average fund.

The Negative-rated Renaissance IPO ETF was launched in October 2013.

Direxion HCM Tactical Enhanced US Equity Strategy ETF

• Morningstar Rating: N/A
• Expense Ratio: 1.17%
• Morningstar Category: Large Blend

The third-worst-performing ETF in April was the $268 million Direxion HCM Tactical Enhanced US Equity Strategy ETF, which fell 8.71%. The Direxion ETF, which is actively managed, fell further than the average 4.19% loss on funds in the large blend category. The fund was first launched in June 2023, and as a result, it does not have a one-year track record.

The Direxion HCM Tactical Enhanced US Equity Strategy ETF has a Morningstar Medalist Rating of Neutral.

Invesco Dorsey Wright SmallCap Momentum ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.60%
• Morningstar Category: Small Growth

The $869 million Invesco Dorsey Wright SmallCap Momentum ETF was the fourth-worst-performing ETF in April, with a loss of 7.95%. The passively managed Invesco ETF performed worse than the average 6.67% loss on funds in the small growth category. Over the past year, the ETF gained 18.16% to land in the 20th percentile within its category, outperforming the category’s average one-year return of 12.46%.

The Silver-rated Invesco Dorsey Wright SmallCap Momentum ETF was launched in July 2012.

IQ Candriam US Mid Cap Equity ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.15%
• Morningstar Category: Mid-Cap Blend

Fifth-worst was the $199 million IQ Candriam US Mid Cap Equity ETF, which lost 7.78% in April. The passively managed New York Life ETF fell further than the average 5.63% decline on funds in the mid-cap blend category. Over the past year, the IQ Candriam US Mid Cap Equity ETF rose 12.72%, finishing in the 76th percentile within its category. It underperformed the category’s average one-year return of 16.38%.

The IQ Candriam US Mid Cap Equity ETF considers environmental, social, and governance criteria. This fund has a Morningstar Medalist Rating of Bronze.

Invesco S&P SmallCap 600 Pure Value ETF

• Morningstar Rating: 1 star
• Expense Ratio: 0.35%
• Morningstar Category: Small Value

The sixth-worst-performing ETF in April was the $222 million Invesco S&P SmallCap 600 Pure Value ETF, which lost 7.77%. The passively managed Invesco ETF fell further than the average 5.69% loss on funds in the small value category. Over the past 12 months, the Invesco S&P SmallCap 600 Pure Value ETF rose 13.62%, placing it in the 67th percentile within its category and underperforming the 15.72% return on the average fund.

The Invesco S&P SmallCap 600 Pure Value ETF has a Morningstar Medalist Rating of Neutral. It was launched in March 2006.

Congress SMID Growth ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.68%
• Morningstar Category: Mid-Cap Growth

With a 7.57% loss, the $115 million Congress SMID Growth ETF was the seventh-worst-performing ETF on our list for April. The actively managed Congress ETF fell further than the average 6.35% loss on funds in the mid-cap growth category. The fund was first launched in August 2023, and as a result, it does not have a one-year track record.

The Congress SMID Growth ETF has a Morningstar Medalist Rating of Gold.

Invesco S&P MidCap 400 Pure Value ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.35%
• Morningstar Category: Small Value

The eighth-worst-performing ETF in April was the $299 million Invesco S&P MidCap 400 Pure Value ETF, which fell 7.50%. The Invesco ETF, which is passively managed, fell further than the average 5.69% loss on funds in the small value category. Over the past 12 months, the ETF rose 19.44% to the 21st percentile within its category, outperforming the average one-year return of 15.72%.

The Invesco S&P MidCap 400 Pure Value ETF, launched in March 2006, has a Morningstar Medalist Rating of Silver.

Harbor Human Capital Factor US Small Cap ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.60%
• Morningstar Category: Small Blend

The $117 million Harbor Human Capital Factor US Small Cap ETF was the ninth-worst-performing ETF in April, with a decline of 7.15%. The passively managed Harbor ETF performed worse than the average 6.10% loss on funds in the small blend category. Over the past year, the ETF gained 6.80% to land in the 92nd percentile, underperforming the category’s average one-year return of 13.96%.

The Harbor Human Capital Factor US Small Cap ETF has a Morningstar Medalist Rating of Neutral. It was launched in April 2023.

Invesco S&P SmallCap 600 Revenue ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.39%
• Morningstar Category: Small Value

Tenth-worst was the $1.4 billion Invesco S&P SmallCap 600 Revenue ETF, which lost 7.06% in April. The passively managed Invesco ETF fell further than the average 5.69% loss on funds in the small value category for the month. Over the past year, the Invesco S&P SmallCap 600 Revenue ETF rose 10.64%, finishing the 12-month period in the 84th percentile within the small value category. It underperformed the category’s average one-year return of 15.72%.

The Silver-rated Invesco S&P SmallCap 600 Revenue ETF was launched in February 2008.

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 offer investors an efficient way to gain exposure to the markets, often with low fees and ease of buying and selling. They also generally offer higher tax efficiency than open-end funds.

Stock ETFs: More Ideas to Consider

Investors who would like to find more ETF investment ideas can do the following:

• Read Morningstar’s guide to ETF investing.
• Explore the best ETFs and how they fit into your portfolio.
• Review the full list of US Stock ETFs. Funds with at least 70% of assets in US stocks are placed within the US equity categories.
• Use the Morningstar Investor Screener tool 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.
• Use Morningstar Investor to build a watchlist of the best ETFs and easily follow their valuations, ratings, and fees.
• Watch our ETF video series, hosted by Daniel Sotiroff, for ideas to consider.

This article was compiled by Bella Albrecht and edited by Lauren Solberg.

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.