Worst-Performing Stock ETFs of 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 November 2024, the worst performers included MarketDesk Focused US Dividend ETF FDIV and Capital Group Dividend Value ETF CGDV. Data in this article is sourced from Morningstar Direct.

Screening for the Worst-Performing ETFs

To find the month’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, as well as ETFs with less than $100 million in total assets.

Among the worst-performing ETFs, five were from the large value category, where funds gained 5.58% in November.

The 10 Worst-Performing ETFs for November 2024

1. MarketDesk Focused US Dividend ETF FDIV
2. Capital Group Dividend Value ETF CGDV
3. Pacer Trendpilot 100 ETF PTNQ
4. Franklin Income Equity Focus ETF INCE
5. Bahl & Gaynor Income Growth ETF BGIG
6. Invesco S&P 500 High Dividend Low Volatility ETF SPHD
7. Capital Group Conservative Equity ETF CGCV
8. Harbor Dividend Growth Leaders ETF GDIV
9. FlexShares US Quality Low Volatility Index Fund QLV
10. ETC 6 Meridian Mega Cap Equity ETF SIXA

Metrics for the Worst-Performing Stock ETFs

MarketDesk Focused US Dividend ETF

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

The worst-performing ETF in November was the $115 million MarketDesk Focused US Dividend ETF, which gained 2.92%. The actively managed MarketDesk ETF underperformed the average 6.82% gain on funds in the mid-cap value category. Over the past 12 months, the MarketDesk Focused US Dividend ETF rose 19.23%, placing it in the 93rd percentile within its category and underperforming the 28.13% return on the average fund.

The MarketDesk Focused US Dividend ETF, launched in September 2023, has a Morningstar Medalist Rating of Neutral.

Capital Group Dividend Value ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.33%
• Morningstar Category: Large Value

With a 2.98% gain, the $12.3 billion Capital Group Dividend Value ETF was the second-worst-performing ETF on our list for November. The actively managed Capital Group ETF underperformed the average 5.58% gain on funds in the large value category. Over the past 12 months, the Capital Group Dividend Value ETF gained 34.17%, placing it in the 6th percentile within its category and outperforming the 27.70% return on the average fund.

The Silver-rated Capital Group Dividend Value ETF launched in February 2022.

Pacer Trendpilot 100 ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.65%
• Morningstar Category: Large Growth

The third-worst-performing ETF in November was the $1.4 billion Pacer Trendpilot 100 ETF, which rose 3.07%. The Pacer ETF, which is passively managed, underperformed the average 7.24% gain on funds in the large growth category. Over the past 12 months, the ETF rose 18.61% to place in the 100th percentile within its category, underperforming the average one-year return of 37.09%.

The Pacer Trendpilot 100 ETF has a Medalist Rating of Bronze. It launched in June 2015.

Franklin Income Equity Focus ETF

• Morningstar Rating: 2 stars
• Expense Ratio: 0.29%
• Morningstar Category: Large Blend

The $100 million Franklin Income Equity Focus ETF was the fourth-worst performing ETF in November, with a return of 3.14%. The actively managed Franklin Templeton ETF performed worse than the average 5.96% gain on funds in the large blend category. Over the past year, the ETF gained 22.03% to land in the 95th percentile within its category, underperforming the average one-year return of 31.52%.

The Neutral-rated Franklin Income Equity Focus ETF launched in September 2016.

Bahl & Gaynor Income Growth ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.45%
• Morningstar Category: Large Value

Fifth-worst was the $169 million Bahl & Gaynor Income Growth ETF, which gained 3.23% in November. The actively managed Bahl & Gaynor ETF fell short of the average 5.58% return on funds in the large value category. Over the past year, the ETF rose 27.38%, finishing in the 56th percentile within its category. It performed roughly in line with the category’s average one-year return of 27.70%.

The Bahl & Gaynor Income Growth ETF has a Medalist Rating of Neutral. It launched in September 2023.

Invesco S&P 500 High Dividend Low Volatility ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.30%
• Morningstar Category: Large Value

The sixth-worst-performing ETF in November was the $3.6 billion Invesco S&P 500 High Dividend Low Volatility ETF, which gained 3.46%. The passively managed Invesco ETF underperformed the average 5.58% gain on funds in the large value category. Over the past 12 months, the Invesco S&P 500 High Dividend Low Volatility ETF rose 31.85%, placing it in the 16th percentile within its category and outperforming the 27.70% return on the average fund.

The Invesco S&P 500 High Dividend Low Volatility ETF has a Medalist Rating of Neutral. It launched in October 2012.

Capital Group Conservative Equity ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.33%
• Morningstar Category: Large Value

With a 3.49% gain, the $140 million Capital Group Conservative Equity ETF was the seventh-worst-performing ETF on our list for November. The actively managed Capital Group ETF underperformed the average 5.58% gain on funds in the large value category. The fund launched in June 2024 and does not have a one-year track record.

The Capital Group Conservative Equity ETF has a Medalist Rating of Gold.

Harbor Dividend Growth Leaders ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.50%
• Morningstar Category: Large Blend

The eighth-worst-performing ETF in November was the $287 million Harbor Dividend Growth Leaders ETF, which rose 3.71%. The Harbor ETF, which is actively managed, underperformed the average 5.96% gain on funds in the large blend category. Over the past 12 months, the ETF rose 23.64% to place in the 91st percentile within its category, underperforming the average one-year return of 31.52%.

The Harbor Dividend Growth Leaders ETF, launched in July 2013, has a Medalist Rating of Neutral.

FlexShares US Quality Low Volatility Index Fund

• Morningstar Rating: 3 stars
• Expense Ratio: 0.17%
• Morningstar Category: Large Blend

The $133 million FlexShares US Quality Low Volatility Index Fund was the ninth-worst-performing ETF in November, with a return of 3.98%. The passively managed Flexshares ETF performed worse than the average 5.96% gain on funds in the large blend category. Over the past year, the ETF gained 26.20% to land in the 82nd percentile, underperforming the category’s average one-year return of 31.52%.

The FlexShares US Quality Low Volatility Index Fund has a Medalist Rating of Silver. It launched in July 2019.

ETC 6 Meridian Mega Cap Equity ETF

• Morningstar Rating: 5 stars
• Expense Ratio: 0.78%
• Morningstar Category: Large Value

Tenth-worst was the $291 million ETC 6 Meridian Mega Cap Equity ETF, which gained 3.98% in November. The actively managed Exchange Traded Concepts ETF underperformed the average 5.58% return on funds in the large value category for the month. Over the past year, the ETC 6 Meridian Mega Cap Equity ETF rose 34.68%, finishing the 12-month period in the 5th percentile within the large value category. It outperformed the category’s average one-year return of 27.70%.

The ETC 6 Meridian Mega Cap Equity ETF has a Negative 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.

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.