Top- and Bottom-Performing Stock ETFs

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 in an attempt 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 February 2024, the top-performing stock ETFs included mid-cap growth fund Renaissance IPO ETF and Invesco S&P MidCap 400 Pure Growth ETF. The month’s worst performers included Global X SuperDividend US ETF and Franklin US Low Volatility High Dividend Index ETF.

Screening for the Best- and Worst-Performing ETFs

To find the month’s best- and worst-performing stock ETFs, we screened the Morningstar US Equity category for funds that trade in the United States. We excluded funds with less than $100 million in total assets. Within our list, five funds fell into the mid-cap growth category, where the average name rose 7.37% in February.

Returns for the best- and worst-performing ETFs ranged from 15.5% to -0.3%, a gap of 15.7 percentage points.

The 10 Best-Performing ETFs In February

1. Renaissance IPO ETF IPO
2. Invesco S&P MidCap 400 Pure Growth ETF RFG
3. ARK Innovation ETF ARKK
4. Invesco S&P MidCap Quality ETF XMHQ
5. Invesco S&P MidCap 400 GARP ETF GRPM
6. Invesco S&P 500 Momentum ETF SPMO
7. Alpha Architect US Quantitative Momentum ETF QMOM
8. Hartford Large Cap Growth ETF HFGO
9. First Trust Mid Cap Growth AlphaDEX ETF FNY
10. TCW Transform Systems ETF NETZ

The 10 Worst-Performing ETFs In February

1. Global X SuperDividend US ETF DIV
2. Franklin US Low Volatility High Dividend Index ETF LVHD
3. ProShares Russell 2000 Dividend Growers ETF SMDV
4. Invesco Dow Jones Industrial Average Dividend ETF DJD
5. Invesco Russell 2000 Dynamic Multifactor ETF OMFS
6. Invesco S&P MidCap 400 Pure Value ETF RFV
7. Vanguard US Value Factor ETF VFVA
8. SPDR Portfolio S&P 500 High Dividend ETF SPYD
9. American Century Focused Large Cap Value ETF FLV
10. SEI Large Cap Low Volatility Factor ETF SELV

Renaissance IPO ETF

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

The $181 million Renaissance IPO ETF was the best-performing ETF in February, with a 15.48% return. The return on the passively managed ETF topped the 7.37% gain on the average fund in Morningstar’s mid-cap growth category for the month. Looking back over the last 12 months, Renaissance IPO ETF has returned 39.12%, outperforming the 20.88% gain on the average fund in its category, leaving the ETF in the 2nd percentile for performance.

Renaissance IPO 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 unlikely to deliver positive returns after fees.

Invesco S&P MidCap 400 Pure Growth ETF

• Morningstar Rating: 2 stars
• Expense Ratio: 0.35%
• Morningstar Category: Mid-Cap Growth

The second-best performing ETF in February was the $295 million Invesco S&P MidCap 400 Pure Growth ETF. The passively managed Invesco ETF returned 14.19%, outperforming the average mid-cap growth fund, which gained 7.37% during the month. Looking back over the last 12 months, Invesco S&P MidCap 400 Pure Growth ETF has returned 28.47%, outperforming the 20.88% return on the average fund in its category, leaving the ETF in the 10th percentile.

The Negative-rated Invesco S&P MidCap 400 Pure Growth ETF was launched in March 2006.

ARK Innovation ETF

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

The $8 billion ARK Innovation ETF ranked third for the month, returning 12.79% in February. The ARK ETF, which is actively managed, topped the 7.37% average return on funds in the mid-cap growth category for February. Over the last 12 months, the ETF has returned 29.52%, ahead of the 20.88% gain on the average fund in its category, leaving the ETF in the 7th percentile.

ARK Innovation ETF, launched in October 2014, has a Negative Medalist Rating.

Invesco S&P MidCap Quality ETF

• Morningstar Rating: 5 stars
• Expense Ratio: 0.25%
• Morningstar Category: Mid-Cap Blend

With a 12.16% return, the $4 billion Invesco S&P MidCap Quality ETF ranked fourth in February among ETFs. The passively managed ETF outperformed the 5.6% return on the average mid-cap blend fund. Over the last 12 months, the fund has gained 39.63%, ahead of the 14.7% return on funds in its category, placing it in the 1st percentile for the period.

The Invesco S&P MidCap Quality ETF has a Silver Medalist Rating. It launched in December 2006.

Invesco S&P MidCap 400 GARP ETF

• Morningstar Rating: 5 stars
• Expense Ratio: 0.35%
• Morningstar Category: Small Blend

The fifth-best-performing ETF was the $327 million Invesco S&P MidCap 400 GARP ETF, which gained 11.66% in February. This passively managed ETF beat the 4.67% average return on funds in the small blend category for the month. Over the past year, the ETF rose 22.55%, outperforming the 9.67% return on the average fund in its category and placing it in the 2nd percentile.

Invesco S&P MidCap 400 GARP ETF, launched in December 2010, has a Medalist Rating of Bronze.

Invesco S&P 500 Momentum ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.13%
• Morningstar Category: Large Growth

The $734 million Invesco S&P 500 Momentum ETF was the sixth-best-performing US ETF in February, with an 11.14% return. The return on the passively managed ETF topped the 6.91% gain on the average fund in Morningstar’s large growth category for the month. Looking back over the last 12 months, the Invesco S&P 500 Momentum ETF has returned 45.5%, outperforming the 40.97% return on the average fund in its category, leaving the ETF in the 39th percentile for performance.

The Bronze-rated Invesco S&P 500 Momentum ETF was launched in October 2015.

Alpha Architect US Quantitative Momentum ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.29%
• Morningstar Category: Mid-Cap Growth

The seventh-best-performing ETF in February was the $195 million Alpha Architect US Quantitative Momentum ETF. The actively managed Alpha Architect ETF returned 10.5% in February, outperforming the average mid-cap growth fund, which gained 7.37% during the month. Looking back over the last 12 months, the Alpha Architect US Quantitative Momentum ETF has returned 26.29%, outperforming the 20.88% return on the average fund in its category, leaving the ETF in the 20th percentile.

The Alpha Architect US Quantitative Momentum ETF has a Medalist Rating of Neutral. It was launched in December 2015.

Hartford Large Cap Growth ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.60%
• Morningstar Category: Large Growth

The $118 million Hartford Large Cap Growth ETF ranked eighth for the month, returning 10.14%. The ETF, which is actively managed, topped the 6.91% average gain on funds in the large growth category for February. Over the last 12 months, Hartford Funds ETF has returned 49.52%, ahead of the 40.97% return on the average fund in its category, leaving the ETF in the 22nd percentile.

The Neutral-rated Hartford Large Cap Growth ETF was launched in November 2021.

First Trust Mid Cap Growth AlphaDEX ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.70%
• Morningstar Category: Mid-Cap Growth

With a 9.97% gain, the $324 million First Trust Mid Cap Growth AlphaDEX ETF ranked ninth in February. The passively managed ETF outperformed the 7.37% return on the average mid-cap growth fund. Over the last 12 months, the fund has returned 21.11%, roughly in line with the 20.88% return on funds in its category, placing it in the 50th percentile for the period.

The First Trust Mid Cap Growth AlphaDEX ETF, launched in April 2011, has a Medalist Rating of Silver.

TCW Transform Systems ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.75%
• Morningstar Category: Large Blend

The tenth-best-performing stock ETF was the $121 million TCW Transform Systems ETF, which gained 9.71% in February. This actively managed ETF beat the 4.97% average return on funds in the large blend category for the month. Over the past year, the TCW Transform Systems ETF rose 30.02%, outperforming the 26.06% return on the average fund in its category and placing it in the 30th percentile.

The TCW Transform Systems ETF takes environmental, social, and governance criteria into consideration. This fund has a Medalist Rating of Neutral.

Metrics for the Worst-Performing Stock ETFs

Global X SuperDividend US ETF

• Morningstar Rating: 1 star
• Expense Ratio: 0.45%
• Morningstar Category: Mid-Cap Value

The month’s worst-performing ETF was the $595 million Global X SuperDividend US ETF, which lost 0.27%. The passively managed Global X ETF underperformed the average 3.59% gain on funds in the mid-cap value category in February. Over the past 12 months, the Global X SuperDividend US ETF fell 1.19%, placing it in the 100th percentile and underperforming the 10.54% return on the average fund in its category.

The Global X SuperDividend US ETF, launched in March 2013, has a Medalist Rating of Negative.

Franklin US Low Volatility High Dividend Index ETF

• Morningstar Rating: 2 stars
• Expense Ratio: 0.27%
• Morningstar Category: Large Value

With a 0.2% gain, the $657 million Franklin US Low Volatility High Dividend Index ETF was the second-worst-performing ETF on our list for February. The passively managed ETF underperformed the average 3.26% gain on funds in the large value category in February. Over the past 12 months, the ETF lost 0.64%, placing it in the 100th percentile and underperforming the 13.91% return on the average fund in its category.

The Silver-rated Franklin US Low Volatility High Dividend Index ETF was launched in December 2015.

ProShares Russell 2000 Dividend Growers ETF

• Morningstar Rating: 2 stars
• Expense Ratio: 0.40%
• Morningstar Category: Small Blend

The third-worst-performing ETF in February was the $777 million ProShares Russell 2000 Dividend Growers ETF, which rose 0.67%. The ProShares ETF, which is passively managed, underperformed the average 4.67% gain on funds in the small blend category in February. Over the past 12 months, the ETF fell 1.19% to the 98th percentile of its category, underperforming its average one-year return of 9.67%.

The ProShares Russell 2000 Dividend Growers ETF has a Medalist Rating of Negative. It was launched in February 2015.

Invesco Dow Jones Industrial Average Dividend ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.07%
• Morningstar Category: Large Value

The $293 million Invesco Dow Jones Industrial Average Dividend ETF was the fourth-worst performing ETF in February, with a return of 0.67%. The passively managed ETF performed worse than the average 3.26% gain on funds in the large value category in February. Over the past year, the ETF gained 13.41% to land in the 56th percentile within its category, roughly in line with its average one-year return of 13.91%.

The Bronze-rated Invesco Dow Jones Industrial Average Dividend ETF was launched in December 2015.

Invesco Russell 2000 Dynamic Multifactor ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.39%
• Morningstar Category: Small Blend

Fifth-worst was the $368 million Invesco Russell 2000 Dynamic Multifactor ETF, which gained 0.69% in February. The passively managed ETF fell below the average 4.67% return on funds in the small blend category for the month. Over the past year, the Invesco Russell 2000 Dynamic Multifactor ETF rose 0.45%, finishing the period in the 96th percentile within the small blend category. It underperformed the category’s average one-year return of 9.67%.

The Invesco Russell 2000 Dynamic Multifactor ETF has a Medalist Rating of Silver. It was launched in November 2017.

Invesco S&P MidCap 400 Pure Value ETF

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

The sixth-worst-performing ETF in February 2024 was the $317 million Invesco S&P MidCap 400 Pure Value ETF, which gained 0.82%. The passively managed ETF underperformed the average 3.09% gain on funds in the small value category in February. Over the past 12 months, the Invesco S&P MidCap 400 Pure Value ETF rose 12.01%, placing it in the 19th percentile within its category and outperforming the 8% return on the average fund.

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

Vanguard US Value Factor ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.13%
• Morningstar Category: Mid-Cap Value

With a 0.88% gain, the $681 million Vanguard US Value Factor ETF was the seventh-worst-performing ETF on our list for February. The actively managed Vanguard ETF underperformed the average 3.59% gain on funds in the mid-cap value category in February. Over the past 12 months, the Vanguard US Value Factor ETF gained 10.14%, placing it in the 53rd percentile within its category and roughly in line with the 10.54% return on the average fund.

The Vanguard US Value Factor ETF has a Medalist Rating of Gold.

SPDR Portfolio S&P 500 High Dividend ETF

• Morningstar Rating: 1 star
• Expense Ratio: 0.07%
• Morningstar Category: Large Value

The eighth-worst-performing ETF in February was the $6.7 billion SPDR Portfolio S&P 500 High Dividend ETF, which rose 0.92%. The State Street ETF, which is passively managed, underperformed the average 3.26% gain on funds in the large value category in February. Over the past 12 months, the ETF rose 1.94% to place in the 98th percentile within its category, underperforming the category’s average one-year return of 13.91%.

The SPDR Portfolio S&P 500 High Dividend ETF, launched in October 2015, has a Medalist Rating of Bronze.

American Century Focused Large Cap Value ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.42%
• Morningstar Category: Large Value

The $219 million American Century Focused Large Cap Value ETF was the ninth-worst-performing ETF in February, with a return of 0.99%. The actively managed American Century ETF performed worse than the average 3.26% gain on funds in the large value category in February. Over the past year, the ETF gained 9.67% to land in the 78th percentile within its category, underperforming the average one-year return of 13.91%.

The American Century Focused Large Cap Value ETF has a Medalist Rating of Bronze. It was launched in March 2020.

SEI Large Cap Low Volatility Factor ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.15%
• Morningstar Category: Large Blend

Tenth-worst was the $123 million SEI Large Cap Low Volatility Factor ETF, which gained 1.13% in February. The actively managed ETF underperformed the average 4.97% return on funds in the large blend category for the month. Over the past year, the SEI Large Cap Low Volatility Factor ETF rose 12.27%, finishing the period in the 96th percentile within the large blend category. It underperformed the category’s average one-year return of 26.06%.

The Neutral-rated SEI Large Cap Low Volatility Factor ETF was launched in May 2022.

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 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.

The Best Stock ETFs: More Ideas to Consider

Investors who would like to find more of the top-performing or cheapest ETFs 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.