Worst-Performing Stock ETFs of 2024

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 2024, the worst performers included Pacer US Small Cap Cash Cows 100 ETF CALF and Invesco S&P SmallCap Value with Momentum ETF XSVM. Data in this article is sourced from Morningstar Direct.

Screening for the Worst-Performing ETFs

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

Among the worst-performing ETFs, six were from the small value category, where funds gained 8.87% in 2024.

The 10 Worst-Performing ETFs for 2024

1. Pacer US Small Cap Cash Cows 100 ETF CALF
2. Invesco S&P SmallCap Value with Momentum ETF XSVM
3. Euclidean Fundamental Value ETF ECML
4. First Trust Small Cap Value AlphaDEX Fund FYT
5. Cambria Shareholder Yield ETF SYLD
6. Invesco Russell 2000 Dynamic Multifactor ETF OMFS
7. Harbor Human Capital Factor US Small Cap ETF HAPS
8. EA Bridgeway Omni Small-Cap Value ETF BSVO
9. MarketDesk Focused US Dividend ETF FDIV
10. Invesco S&P SmallCap 600 Pure Value ETF RZV

Metrics for the Worst-Performing Stock ETFs

Pacer US Small Cap Cash Cows 100 ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.59%
• Morningstar Category: Small Value

The worst-performing ETF in 2024 was the $8.1 billion Pacer US Small Cap Cash Cows 100 ETF, which lost 7.45%. The passively managed Pacer ETF underperformed the average 8.87% gain on funds in the small value category. Over the past three years, the fund rose 2.09%, placing it in the 83rd percentile within its category and underperforming the 4.47% return on the average fund.

The Pacer US Small Cap Cash Cows 100 ETF, launched in June 2017, has a Morningstar Medalist Rating of Bronze.

Invesco S&P SmallCap Value with Momentum ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.37%
• Morningstar Category: Small Value

With a 2.11% gain, the $786 million Invesco S&P SmallCap Value with Momentum ETF was the second-worst-performing ETF on our list for 2024. The passively managed Invesco ETF underperformed the average 8.87% gain on funds in the small value category. Over the past three years, the fund gained 2.00%, placing it in the 85th percentile within its category and underperforming the 4.47% return on the average fund.

The Silver-rated Invesco S&P SmallCap Value with Momentum ETF was launched in March 2005.

Euclidean Fundamental Value ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.95%
• Morningstar Category: Small Value

The third-worst-performing ETF in 2024 was the $170 million Euclidean Fundamental Value ETF, which rose 2.45%. The Euclidean Technologies Management ETF, which is actively managed, underperformed the average 8.87% gain on funds in the small value category. The fund launched in May 2023 and does not have a three-year track record.

The Euclidean Fundamental Value ETF has a Morningstar Medalist Rating of Neutral.

First Trust Small Cap Value AlphaDEX Fund

• Morningstar Rating: 2 stars
• Expense Ratio: 0.72%
• Morningstar Category: Small Value

The $167 million First Trust Small Cap Value AlphaDEX Fund was the fourth-worst-performing ETF in 2024, with a return of 3.12%. The passively managed First Trust ETF performed worse than the average 8.87% gain on funds in the small value category. Over the past three years, the ETF gained 2.91% to land in the 72nd percentile within its category, underperforming the average one-year return of 4.47%.

The Neutral-rated First Trust Small Cap Value AlphaDEX Fund was launched in April 2011.

Cambria Shareholder Yield ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.59%
• Morningstar Category: Mid-Cap Value

Fifth-worst was the $1.2 billion Cambria Shareholder Yield ETF, which gained 3.4% in 2024. The actively managed Cambria ETF fell short of the average 11.46% return on funds in the mid-cap value category. Over the past three years, the ETF rose 4.25%, finishing in the 66th percentile within its category. It performed roughly in line with the category’s average return of 5.24%.

The Cambria Shareholder Yield ETF has a Morningstar Medalist Rating of Neutral. It was launched in May 2013.

Invesco Russell 2000 Dynamic Multifactor ETF

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

The sixth-worst-performing ETF in 2024 was the $238 million Invesco Russell 2000 Dynamic Multifactor ETF, which gained 3.97%. The passively managed Invesco ETF underperformed the average 11.15% gain on funds in the small blend category. Over the past three years, the ETF fell 0.29%, placing it in the 92nd percentile within its category and underperforming the 2.58% return on the average fund.

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

Harbor Human Capital Factor US Small Cap ETF

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

With a 4.06% gain, the $133 million Harbor Human Capital Factor US Small Cap ETF was the seventh-worst-performing ETF on our list for 2024. The passively managed Harbor ETF underperformed the average 11.15% gain on funds in the small blend category. The fund launched in April 2023 and does not have a three-year track record.

The Harbor Human Capital Factor US Small Cap 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.

EA Bridgeway Omni Small-Cap Value ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.47%
• Morningstar Category: Small Value

The eighth-worst-performing ETF in 2024 was the $1.5 billion EA Bridgeway Omni Small-Cap Value ETF, which rose 4.75%. The Bridgeway ETF, which is actively managed, underperformed the average 8.87% gain on funds in the small value category. Over the past three years, the ETF rose 5.23% to place in the 38th percentile within its category, roughly in line with the average one-year return of 4.47%.

The EA Bridgeway Omni Small-Cap Value ETF, launched in December 2010, has a Morningstar Medalist Rating of Silver.

MarketDesk Focused US Dividend ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.35%
• Morningstar Category: Mid-Cap Value

The $112 million MarketDesk Focused US Dividend ETF was the ninth-worst-performing ETF in 2024, with a return of 4.97%. The actively managed ETF performed worse than the average 11.46% gain on funds in the mid-cap value category. The fund launched in September 2023 and does not have a three-year track record.

The MarketDesk Focused US Dividend ETF has a Morningstar Medalist Rating of Neutral.

Invesco S&P SmallCap 600 Pure Value ETF

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

Tenth-worst was the $251 million Invesco S&P SmallCap 600 Pure Value ETF, which gained 5.17% in 2024. The passively managed Invesco ETF underperformed the average 8.87% return on funds in the small value category. Over the past three years, the ETF rose 6.41%, finishing in the 23rd percentile within the small value category. It outperformed the category’s average one-year return of 4.47%.

The Neutral-rated Invesco S&P SmallCap 600 Pure Value ETF was launched in March 2006.

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 an 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.