The Worst-Performing Stock ETFs of 2025

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 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 2025, the worst-performing stock ETFs included mid-cap growth funds Motley Fool Mid-Cap Growth ETF TMFM and BBH Select Mid Cap ETF BBHM. Data in this article is sourced from Morningstar Direct.

Screening for the Worst-Performing ETFs

When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.

To find the year’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 2025

1. Motley Fool Mid-Cap Growth ETF TMFM
2. BBH Select Mid Cap ETF BBHM
3. TCW Durable Growth ETF GRW
4. Sovereign’s Capital Flourish Fund SOVF
5. SMI 3Fourteen Full-Cycle Trend ETF FCTE
6. Pacer Trendpilot US Mid Cap ETF PTMC
7. Argent Mid Cap ETF AMID
8. Rockefeller US Small-Mid Cap ETF RSMC
9. WisdomTree US SmallCap Quality Dividend Growth Fund DGRS
10. Neuberger Small-Mid Cap ETF NBSM

Metrics for the Worst-Performing Stock ETFs

Motley Fool Mid-Cap Growth ETF

• Morningstar Rating: ★★
• Expense Ratio: 0.85%
• Morningstar Category: Mid-Cap Growth

The worst-performing ETF in 2025 was the $143 million Motley Fool Mid-Cap Growth ETF. The actively managed Motley Fool Asset Management ETF declined 9.08%, underperforming the average mid-cap growth fund, which gained 7.73%. Over the last three years, the fund has climbed 9.23%, underperforming the 15.17% gain on funds in its category, placing it in the 85th percentile for the period.

The Motley Fool Mid-Cap Growth 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.

BBH Select Mid Cap ETF

• Morningstar Rating: ★★
• Expense Ratio: 0.84%
• Morningstar Category: Mid-Cap Growth

The $497 million BBH Select Mid Cap ETF ranked second for the year, falling 5.64%. The BBH ETF, which is actively managed, lagged the 7.73% gain on the average mid-cap growth fund. Over the past three years, the fund has risen 9.83%, underperforming the 15.17% gain on funds in its category, placing it in the 80th percentile for the period.

The Neutral-rated BBH Select Mid Cap ETF launched in May 2021.

TCW Durable Growth ETF

• Morningstar Rating: ★★
• Expense Ratio: 0.75%
• Morningstar Category: Large Growth

The third-worst-performing ETF in 2025 was the $111.8 million TCW Durable Growth ETF. The actively managed TCW ETF declined 5.27%, underperforming the average large growth fund, which gained 16.07%. Over the last three years, the fund has climbed 15.23%, underperforming the 27.62% gain on funds in its category, placing it in the 97th percentile for the period.

The Negative-rated TCW Durable Growth ETF launched in January 2016.

Sovereign’s Capital Flourish Fund

• Morningstar Rating: N/A
• Expense Ratio: 0.75%
• Morningstar Category: Mid-Cap Blend

The $100.4 million Sovereign’s Capital Flourish Fund ranked fourth for the year, falling 4.37%. The Sovereign’s Capital ETF, which is actively managed, lagged the 9.08% gain on the average mid-cap blend fund. The fund was first launched in October 2023, and as a result, it does not have a three-year record.

The Sovereign’s Capital Flourish Fund has a Morningstar Medalist Rating of Neutral.

SMI 3Fourteen Full-Cycle Trend ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.85%
• Morningstar Category: Large Blend

The fifth-worst-performing ETF in 2025 was the $214.9 million SMI 3Fourteen Full-Cycle Trend ETF. The actively managed 3fourteensmi ETF declined 3.76%, underperforming the average large blend fund, which gained 15.52%. The fund launched in July 2024 and does not have a three-year record.

The SMI 3Fourteen Full-Cycle Trend ETF has a Morningstar Medalist Rating of Neutral.

Pacer Trendpilot US Mid Cap ETF

• Morningstar Rating: ★
• Expense Ratio: 0.6%
• Morningstar Category: Mid-Cap Blend

The $387.1 million Pacer Trendpilot US Mid Cap ETF was the sixth-worst-performing ETF in 2025, with a 1.52% loss. The passively managed Pacer ETF lagged the 9.08% gain on the average fund in Morningstar’s mid-cap blend category for the year. Over the last three years, the fund has gained 6.19%, underperforming the 13.23% gain on funds in its category, placing it in the 97th percentile for the period.

The Bronze-rated Pacer Trendpilot US Mid Cap ETF launched in June 2015.

Argent Mid Cap ETF

• Morningstar Rating: ★★★
• Expense Ratio: 0.52%
• Morningstar Category: Mid-Cap Blend

The seventh-worst-performing ETF in 2025 was the $102.8 million Argent Mid Cap ETF. The actively managed Argent ETF declined 1.42%, underperforming the average mid-cap blend fund, which gained 9.08%. Over the last three years, the fund has climbed 13.51%, performing roughly in line with the 13.23% gain on funds in its category, placing it in the 41st percentile for the period.

The Neutral-rated Argent Mid Cap ETF launched in August 2022.

Rockefeller US Small-Mid Cap ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.75%
• Morningstar Category: Small Growth

The $705.7 million Rockefeller US Small-Mid Cap ETF was the eighth-worst-performing ETF in 2025, with a 0.71% loss. The actively managed Rockefeller Asset management ETF lagged the 8.06% gain on the average fund in Morningstar’s small growth category for the year. The fund launched in October 2024 and does not have a three-year record.

The Rockefeller US Small-Mid Cap ETF has a Morningstar Medalist Rating of Neutral.

WisdomTree US SmallCap Quality Dividend Growth Fund

• Morningstar Rating: ★★★
• Expense Ratio: 0.38%
• Morningstar Category: Small Value

The ninth-worst-performing ETF in 2025 was the $344 million WisdomTree US SmallCap Quality Dividend Growth Fund. The passively managed WisdomTree ETF declined 0.25%, underperforming the average small value fund, which gained 6.84%. Over the last three years, the fund has climbed 10.02%, underperforming the 10.58% gain on funds in its category, placing it in the 60th percentile for the period.

The Gold-rated WisdomTree US SmallCap Quality Dividend Growth Fund launched in July 2013.

Neuberger Small-Mid Cap ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.65%
• Morningstar Category: Mid-Cap Growth

The $201.9 million Neuberger Small-Mid Cap ETF was the tenth-worst-performing ETF in 2025, neither gaining nor losing. The actively managed Neuberger Berman ETF lagged the 7.73% gain on the average fund in Morningstar’s mid-cap growth category for the year. The fund launched in March 2024 and does not have a three-year record.

The Neuberger Small-Mid Cap ETF has a Morningstar Medalist Rating of Silver.

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.

How to Find Top ETFs for the Long Term

ETFs are often equated with low-cost indexing. However, the ETF marketplace has grown increasingly complicated. Some ETFs track a very narrow part of the market or pursue specific themes. Some ETFs invest based on a particular factor or a combination of them. And now there are actively managed ETFs.

Use these Morningstar resources to help find the best ETFs for the long term:

• Learn about the types of exchange-traded funds, their costs, and how to invest in them by reading Morningstar’s Guide to ETF Investing.
• Find the highest-rated ETFs across all investment categories in The Best ETFs and How They Fit in Your Portfolio.
• Review Morningstar director of personal finance Christine Benz’s suggested ETF portfolios for those saving for or already in retirement, including Tax-Efficient Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, ESG Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Bucket Portfolios for ETF Investors, and Tax-Sheltered ESG Retirement-Bucket Portfolios for ETF Investors.
• Research ETFs based on your personal selection criteria by using our Morningstar Investor Screener. The tool, which is available to Morningstar Investor members, allows investors to screen ETFs based on various criteria, including asset class, Morningstar Category, Medalist Rating, and fee level.
• Visit Morningstar’s ETF page for the latest articles and videos from our ETF specialists.