Exchange-traded funds, or ETFs, are often low-cost 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 second quarter of 2026, the worst-performing ETFs included Indonesia equity funds HSBC MSCI Indonesia UCITS ETF HIDD and Xtrackers MSCI Indonesia Swap UCITS ETF KJ7. 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 quarter’s worst-performing ETFs, we screened those in Morningstar’s equity, allocation, or fixed-income categories that are available in the UK. We excluded ETFs with less than USD 25 million (£18.7 million) in total assets. We also excluded funds that fall into Morningstar’s “trading” categories, as these funds are designed for active traders and are not suitable for long-term investors.
Within our list, three funds fell into the Indonesia equity category, where the average name fell 20.98% in the second quarter.
The 10 Worst-Performing ETFs for Q2 2026
- HSBC MSCI Indonesia UCITS ETF HIDD
- Xtrackers MSCI Indonesia Swap UCITS ETF KJ7
- Amundi MSCI Indonesia UCITS ETF INDO
- Defiance Drone UCITS ETF DRON
- UBS Solactive Global Pure Gold Miners UCITS ETF GGMUSY
- Sprott Junior Uranium Miners UCITS ETF URNJ
- Market Access NYSE Arca Gold BUGS Index UCITS ETF M9SD
- VanEck Gold Miners UCITS ETF GDX
- iShares V PLC - iShares Gold Producers UCITS ETF USD (Acc) IAUP
- VanEck Junior Gold Miners UCITS ETF GDXJ
Metrics for the Worst-Performing ETFs
HSBC MSCI Indonesia UCITS ETF
- : ★★Morningstar Rating
- : 0.5%Expense Ratio
- : Indonesia EquityMorningstar Category
The £152.4 million HSBC MSCI Indonesia UCITS ETF was the worst-performing ETF in the second quarter, with a 26.90% loss. The passively managed HSBC ETF fell further than the 20.98% loss on the average fund in Morningstar’s Indonesia equity category for the quarter. Over the last year, the fund has dropped 39.18%, falling further than the 19.12% loss on funds in its category, placing it in the 99th percentile for the period.
The Neutral-rated HSBC MSCI Indonesia UCITS ETF was launched in March 2011.
Xtrackers MSCI Indonesia Swap UCITS ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.65%
- Morningstar Category: Indonesia Equity
The second worst-performing ETF in the second quarter was the £31.8 million Xtrackers MSCI Indonesia Swap UCITS ETF. The passively managed Xtrackers ETF declined 26.72%, falling further than the average Indonesia equity fund, which dropped 20.98%. Over the last year, the fund has fallen 38.90%, falling further than the 19.12% loss on funds in its category, placing it in the 99th percentile for the period.
The Neutral-rated Xtrackers MSCI Indonesia Swap UCITS ETF was launched in March 2010.
Amundi MSCI Indonesia UCITS ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.45%
- Morningstar Category: Indonesia Equity
The £99 million Amundi MSCI Indonesia UCITS ETF was the third worst-performing ETF in the second quarter, with a 26.71% loss. The passively managed Amundi ETF fell further than the 20.98% loss on the average fund in Morningstar’s Indonesia equity category for the quarter. Over the last year, the fund has dropped 38.79%, falling further than the 19.12% loss on funds in its category, placing it in the 98th percentile for the period.
The Neutral-rated Amundi MSCI Indonesia UCITS ETF was launched in March 2019.
Defiance Drone UCITS ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.69%
- Morningstar Category: Equity Industrial Materials
The fourth worst-performing ETF in the second quarter was the £27.7 million Defiance Drone UCITS ETF. The passively managed HANetf ETF declined 21.86%, underperforming the average equity industrial materials fund, which gained 3.70%. The fund was first launched in March 2026, and as a result, it does not have a one-year record.
The Defiance Drone UCITS ETF has not yet been awarded a Morningstar Medalist Rating.
UBS Solactive Global Pure Gold Miners UCITS ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.43%
- Morningstar Category: Equity Precious Metals
The £305.3 million UBS Solactive Global Pure Gold Miners UCITS ETF ranked fifth for the quarter, falling 19.64%. The UBS ETF, which is passively managed, fell further than the 12.05% loss on the average equity precious metals fund. Over the past year, the fund has risen 45.42%, underperforming the 59.56% gain on funds in its category, placing it in the 83rd percentile for the period.
The Neutral-rated UBS Solactive Global Pure Gold Miners UCITS ETF was launched in November 2012.
Sprott Junior Uranium Miners UCITS ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.85%
- Morningstar Category: Equity Natural Resources
The £44.3 million Sprott Junior Uranium Miners UCITS ETF was the sixth worst-performing ETF in the second quarter, with a 18.72% loss. The passively managed HANetf ETF fell further than the 3.72% loss on the average fund in Morningstar’s equity natural resources category for the quarter. Over the last year, the fund has gained 22.56%, underperforming the 51.63% gain on funds in its category, placing it in the 89th percentile for the period.
The Neutral-rated Sprott Junior Uranium Miners UCITS ETF was launched in February 2024.
Market Access NYSE Arca Gold BUGS Index UCITS ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.97%
- Morningstar Category: Equity Precious Metals
The seventh worst-performing ETF in the second quarter was the £77 million Market Access NYSE Arca Gold BUGS Index UCITS ETF. The passively managed Market Access Asset Management ETF declined 17.86%, falling further than the average equity precious metals fund, which dropped 12.05%. Over the last year, the fund has climbed 58.73%, performing roughly in line with the 59.56% gain on funds in its category, placing it in the 53rd percentile for the period.
The Neutral-rated Market Access NYSE Arca Gold BUGS Index UCITS ETF was launched in January 2007.
VanEck Gold Miners UCITS ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.53%
- Morningstar Category: Equity Precious Metals
The £2.4 billion VanEck Gold Miners UCITS ETF was the eighth worst-performing ETF in the second quarter, with a 17.77% loss. The passively managed VanEck ETF fell further than the 12.05% loss on the average fund in Morningstar’s equity precious metals category for the quarter. Over the last year, the fund has gained 50.73%, underperforming the 59.56% gain on funds in its category, placing it in the 75th percentile for the period.
The VanEck Gold Miners UCITS ETF has not yet been awarded a Morningstar Medalist Rating.
iShares V PLC - iShares Gold Producers UCITS ETF USD (Acc)
- Morningstar Rating: ★★★
- Expense Ratio: 0.55%
- Morningstar Category: Equity Precious Metals
The £2.7 billion iShares V PLC - iShares Gold Producers UCITS ETF USD (Acc) ranked ninth for the quarter, falling 17.61%. The iShares ETF, which is passively managed, fell further than the 12.05% loss on the average equity precious metals fund. Over the past year, the fund has risen 50.16%, underperforming the 59.56% gain on funds in its category, placing it in the 78th percentile for the period.
The Bronze-rated iShares V PLC - iShares Gold Producers UCITS ETF USD (Acc) was launched in September 2011.
VanEck Junior Gold Miners UCITS ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.55%
- Morningstar Category: Equity Precious Metals
The tenth worst-performing ETF in the second quarter was the £815.2 million VanEck Junior Gold Miners UCITS ETF. The passively managed VanEck ETF declined 17.47%, falling further than the average equity precious metals fund, which dropped 12.05%. Over the last year, the fund has climbed 53.47%, underperforming the 59.56% gain on funds in its category, placing it in the 69th percentile for the period.
The Bronze-rated VanEck Junior Gold Miners UCITS ETF was launched in March 2015.
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.
The Best ETFs: More Ideas to Consider
- Read the latest articles on ETFs.
- Use the ETF screener 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.
