Worst-Performing Stock ETFs of the Quarter

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 the third quarter of 2024, the worst performers included Return Stacked US Stocks & Futures Yield ETF RSSY and Castleark Large Growth ETF CARK. Data in this article is sourced from Morningstar Direct.

Screening for the Worst-Performing ETFs

To find the quarter’s worst-performing stock ETFs, we screened the Morningstar US Equity category for those 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, five were from the large growth category, where funds gained 3.68% in the third quarter.

The 10 Worst-Performing ETFs for Q3 2024

1. Return Stacked US Stocks & Futures Yield ETF RSSY
2. Castleark Large Growth ETF CARK
3. Return Stacked US Stocks & Managed Futures ETF RSST
4. YieldMax Universe Fund of Option Income ETFs YMAX
5. AdvisorShares Dorsey Wright FSM US Core ETF DWUS
6. Fidelity Blue Chip Growth ETF FBCG
7. Invesco S&P MidCap 400 Pure Growth ETF RFG
8. Nuveen Growth Opportunities ETF NUGO
9. YieldMax Magnificent 7 Fund of Option Income ETFs YMAG
10. Harbor Long-Term Growers ETF WINN

Metrics for the Worst-Performing Stock ETFs

Return Stacked US Stocks & Futures Yield ETF

• Morningstar Rating: N/A
• Expense Ratio: 1.04%
• Morningstar Category: Large Blend

The worst-performing ETF in the third quarter was the $156 million Return Stacked US Stocks & Futures Yield ETF, which lost 2.34%. The actively managed ETF underperformed the average 5.93% gain on funds in the large blend category. The fund launched in May 2024 and does not have a one-year track record.

The Return Stacked US Stocks & Futures Yield ETF has a Morningstar Medalist Rating of Neutral.

Castleark Large Growth ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.54%
• Morningstar Category: Large Growth

With a 1.28% loss, the $331 million Castleark Large Growth ETF was the second-worst-performing ETF on our list for the third quarter. The actively managed CastleArk ETF underperformed the average 3.68% gain on funds in the large growth category. The fund launched in December 2023 and does not have a one-year track record.

The Castleark Large Growth ETF has a Negative Morningstar Medalist Rating, meaning our analysts expect it to be one of the worst performers in its category and think it is unlikely to deliver positive returns after fees.

Return Stacked US Stocks & Managed Futures ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.98%
• Morningstar Category: Large Blend

The third-worst-performing ETF in the quarter was the $227 million Return Stacked US Stocks & Managed Futures ETF, which fell 0.16%. The ETF, which is actively managed, underperformed the average 5.93% gain on funds in the large blend category. Over the past 12 months, the ETF rose 26.16% to place in the 89th percentile within its category, underperforming the average one-year return of 32.90%.

The Return Stacked US Stocks & Managed Futures ETF has a Morningstar Medalist Rating of Negative. It was launched in September 2023.

YieldMax Universe Fund of Option Income ETFs

• Morningstar Rating: N/A
• Expense Ratio: 1.28%
• Morningstar Category: Large Blend

The $270 million YieldMax Universe Fund of Option Income ETFs was the fourth-worst-performing ETF in the quarter, with a return of 0.12%. The actively managed ETF performed worse than the average 5.93% gain on funds in the large blend category. The fund launched in January 2024 and does not have a one-year track record.

The YieldMax Universe Fund of Option Income ETFs has a Morningstar Medalist Rating of Negative.

AdvisorShares Dorsey Wright FSM US Core ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 1.18%
• Morningstar Category: Large Growth

Fifth-worst was the $112 million AdvisorShares Dorsey Wright FSM US Core ETF, which gained 0.74% in the third quarter. The actively managed AdvisorShares ETF fell short of the average 3.68% return on funds in the large growth category. Over the past year, the AdvisorShares Dorsey Wright FSM US Core ETF rose 32.91%, finishing in the 82nd percentile within its category. It underperformed the category’s average one-year return of 38.91%.

The AdvisorShares Dorsey Wright FSM US Core ETF has a Morningstar Medalist Rating of Negative. It was launched in December 2019.

Fidelity Blue Chip Growth ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.59%
• Morningstar Category: Large Growth

The sixth-worst-performing ETF in the third quarter was the $2.1 billion Fidelity Blue Chip Growth ETF, which gained 0.78%. The actively managed Fidelity ETF underperformed the average 3.68% gain on funds in the large growth category. Over the past 12 months, the Fidelity Blue Chip Growth ETF rose 47.54%, placing it in the 6th percentile in its category and outperforming the 38.91% return on the average fund.

The Fidelity Blue Chip Growth ETF has a Morningstar Medalist Rating of Silver. It was launched in June 2020.

Invesco S&P MidCap 400 Pure Growth ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.35%
• Morningstar Category: Mid-Cap Growth

With a 0.91% gain, the $333 million Invesco S&P MidCap 400 Pure Growth ETF was the seventh-worst-performing ETF on our list for the third quarter. The passively managed Invesco ETF underperformed the average 6.45% gain on funds in the mid-cap growth category. Over the past 12 months, the Invesco S&P MidCap 400 Pure Growth ETF gained 26.24%, placing it in the 47th percentile within its category and putting it roughly in line with the 26.48% return on the average fund.

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

Nuveen Growth Opportunities ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.56%
• Morningstar Category: Large Growth

The eighth-worst-performing ETF in the third quarter was the $2.8 billion Nuveen Growth Opportunities ETF, which rose 1.09%. The Nuveen ETF, which is actively managed, underperformed the average 3.68% gain on funds in the large growth category. Over the past 12 months, the ETF rose 46.51%, putting it in the 9th percentile within its category, outperforming the average one-year return of 38.91%.

The Nuveen Growth Opportunities ETF, launched in September 2021, has a Morningstar Medalist Rating of Gold.

YieldMax Magnificent 7 Fund of Option Income ETFs

• Morningstar Rating: N/A
• Expense Ratio: 1.28%
• Morningstar Category: Large Blend

The $142 million YieldMax Magnificent 7 Fund of Option Income ETFs was the ninth-worst-performing ETF in the third quarter, with a return of 1.25%. The actively managed YieldMax ETFs ETF performed worse than the average 5.93% gain on funds in the large blend category. The fund launched in January 2024 and does not have a one-year track record.

The YieldMax Magnificent 7 Fund of Option Income ETFs has a Morningstar Medalist Rating of Negative.

Harbor Long-Term Growers ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.57%
• Morningstar Category: Large Growth

Tenth-worst was the $543 million Harbor Long-Term Growers ETF, which gained 1.43% in the third quarter. The actively managed Harbor ETF underperformed the average 3.68% return on funds in the large growth category for the quarter. Over the past year, the Harbor Long-Term Growers ETF rose 43.63%, finishing the period in the 24th percentile within the large growth category. It outperformed the category’s average one-year return of 38.91%.

The Neutral-rated Harbor Long-Term Growers ETF was launched in February 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 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.