Exchange-traded funds are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices in an attempt to beat the market. The best ones serve as building blocks for a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In the second quarter of 2025, the worst performers included TD Q US Low Volatility ETF TULV and Middlefield Healthcare Dividend ETF MHCD. Data in this article is sourced from Morningstar Direct.
To read about the best-performing ETFs, check out our other story.
Screening for the Worst-Performing ETFs
To find the quarter’s worst-performing ETFs, we screened equity, allocation, and fixed-income funds that trade within Canada for those that have at least C$10 million in total assets. We narrowed the list to ETFs with parent pillars for their Morningstar Medalist Ratings of average or above, meaning our analysts believe they’re backed by industry-standard asset management companies. We also excluded exchange traded notes.
Among the worst-performing ETFs, three were from the healthcare equity category, where funds fell 12.13% in the second quarter.
The 10 Worst-Performing ETFs of Q2 2025
- TD Q US Low Volatility ETF TULV
- Middlefield Healthcare Dividend ETF MHCD
- Harvest Energy Leaders Plus Income ETF HPF
- iShares US High Dividend Equity Index ETF XHU
- BMO Long-Term US Treasury Bond Index ETF ZTL
- Harvest Healthcare Leaders Income ETF HHL
- CIBC Qx US Low Volatility Dividend ETF CQLU
- TD US Long Term Treasury Bond ETF TULB
- First Trust AlphaDEX US Health Care Sector Index ETF FHH
- iShares MSCI Min Vol USA Index ETF XMU
Metrics for the Worst-Performing ETFs
TD Q US Low Volatility ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.34%
- Morningstar Category: US Equity
The worst-performing ETF in the second quarter was the C$64 million TD Q US Low Volatility ETF, which lost 8.78%. The actively managed TD ETF fell further than the average 4.80% loss on funds in the US equity category. Over the past 12 months, the fund rose 12.26%, placing it in the 47th percentile within its category and outperforming the 10.58% return on the average fund.
The TD Q US Low Volatility ETF, launched in May 2020, has a Morningstar Medalist Rating of Bronze.
Middlefield Healthcare Dividend ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 1.25%
- Morningstar Category: Healthcare Equity
With an 8.62% loss, the C$140 million Middlefield Healthcare Dividend ETF was the second-worst-performing ETF on our list for the second quarter. The actively managed fund edged out the average 12.13% loss on funds in the healthcare equity category. Over the past year, the ETF lost 3.82%, placing it in the 33rd percentile within its category and falling less than the 5.83% loss on the average fund.
The Neutral-rated Middlefield Healthcare Dividend ETF launched in July 2017.
Harvest Energy Leaders Plus Income ETF
- Morningstar Rating: ★
- Expense Ratio: 0.99%
- Morningstar Category: Energy Equity
The third-worst-performing ETF was the C$45 million Harvest Energy Leaders Plus Income ETF, which fell 7.71%. The fund, which is actively managed, fell further than the average 3.83% loss on funds in the energy equity category. Over the past 12 months, the ETF fell 7.48% to place in the 87th percentile within its category, falling further than the category’s average loss of 5.12%.
The Harvest Energy Leaders Plus Income ETF has a Morningstar Medalist Rating of Bronze. It launched in October 2014.
iShares US High Dividend Equity Index ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.34%
- Morningstar Category: US Dividend & Income Equity
The C$165 million iShares US High Dividend Equity Index ETF was the fourth-worst-performing ETF, with a loss of 7.69%. The passively managed fund performed worse than the average 6.02% loss on funds in the US dividend and income equity category. Over the past year, the ETF gained 10.42% to land in the 44th percentile within its category, outperforming the category’s average one-year return of 8.70%.
The Silver-rated iShares US High Dividend Equity Index ETF launched in February 2015.
BMO Long-Term US Treasury Bond Index ETF
- Morningstar Rating: ★
- Expense Ratio: 0.22%
- Morningstar Category: Global Fixed Income
Fifth-worst was the C$323 million BMO Long-Term US Treasury Bond Index ETF, which lost 7.26% in the second quarter. The passively managed fund fell further than the average 2.5% decline on funds in the global fixed income category. Over the past 12 months, the ETF fell 0.34%, finishing in the 91st percentile within its category. It underperformed the category’s average return of 3.91%.
The BMO Long-Term US Treasury Bond Index ETF has a Morningstar Medalist Rating of Neutral. It was launched in February 2017.
Harvest Healthcare Leaders Income ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.98%
- Morningstar Category: Healthcare Equity
The sixth-worst-performing ETF was the C$1.5 billion Harvest Healthcare Leaders Income ETF, which lost 6.95%. The actively managed fund fell less than the average 12.13% loss on funds in the healthcare equity category. Over the past year, the ETF fell 5.74%, placing it in the 51st percentile within its category and roughly in line with the 5.83% loss on the average fund.
The Harvest Healthcare Leaders Income ETF has a Morningstar Medalist Rating of Bronze. It launched in December 2014.
CIBC Qx US Low Volatility Dividend ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.34%
- Morningstar Category: US Dividend & Income Equity
With a 6.68% loss, the C$896 million CIBC Qx US Low Volatility Dividend ETF was the seventh-worst-performing ETF on our list. The actively managed fund performed roughly in line with the average 6.02% loss on funds in the US dividend and income equity category. Over the past 12 months, the ETF gained 17.31%, placing it in the 1st percentile within its category and outperforming the 8.70% return on the average fund.
The CIBC Qx US Low Volatility Dividend ETF, launched in November 2021, has a Morningstar Medalist Rating of Neutral.
TD US Long Term Treasury Bond ETF
- Morningstar Rating: ★
- Expense Ratio: 0.23%
- Morningstar Category: Global Fixed Income
The eighth-worst-performing ETF was the C$85 million TD US Long Term Treasury Bond ETF, which fell 6.38%. The fund, which is actively managed, fell further than the average 2.5% loss on funds in the global fixed income category. Over the past year, the ETF rose 0.37% to place in the 88th percentile within its category, underperforming the average one-year return of 3.91%.
The TD US Long Term Treasury Bond ETF, launched in November 2019, has a Morningstar Medalist Rating of Bronze.
First Trust AlphaDEX US Health Care Sector Index ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.76%
- Morningstar Category: Healthcare Equity
The C$12 million First Trust AlphaDEX US Health Care Sector Index ETF was the ninth-worst-performing ETF in the quarter, with a decline of 5.25%. The passively managed fund performed better than the average 12.13% loss on funds in the healthcare equity category. Over the past 12 months, the ETF dropped 1.25% to land in the 16th percentile, falling less than the category’s average loss of 5.83%.
The First Trust AlphaDEX US Health Care Sector Index ETF has a Morningstar Medalist Rating of Neutral. It launched in October 2014.
iShares MSCI Min Vol USA Index ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.33%
- Morningstar Category: US Equity
Tenth-worst was the C$378 million iShares MSCI Min Vol USA Index ETF, which lost 4.73% in the second quarter. The passively managed fund performed roughly in line with the average 4.80% loss on funds in the US equity category for the quarter. Over the past year, the ETF rose 12.86%, finishing the 12-month period in the 42nd percentile within the US equity category. It outperformed the category’s average one-year return of 10.58%.
The Silver-rated iShares MSCI Min Vol USA Index ETF launched in July 2012.
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: More Ideas to Consider
Investors who would like to find more ETF investment ideas can do the following:
- Use the ETF 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.
- Find ideas specific to your needs, or learn more about ETFs, on our ETF Insights page.
- Compare funds and ETFs side by side and easily follow their valuations, ratings, and fees.
This article was generated with the help of automation and reviewed by Morningstar editors.
