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 third quarter of 2026, the worst-performing stock ETFs included China equity - a shares fund Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF CN50 and equity natural resources fund VanEck Rare Earth and Strategic Metals UCITS ETF REMX. 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 Finland. We excluded ETFs with less than USD 25 million (€22.2 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.
The 10 Worst-Performing ETFs for Q3 2026
- Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF CN50
- VanEck Rare Earth and Strategic Metals UCITS ETF REMX
- Invesco Solar Energy UCITS ETF ISUN
- First Trust RBA American Industrial Renaissance UCITS ETF Class AIRR
- First Trust Nasdaq Clean Edge Green Energy UCITS ETF QCLU
- VanEck Space Innovators UCITS ETF JEDI
- Defiance Memory UCITS ETF DRAM
- iShares Global Clean Energy Transition UCITS ETF INRG
- WisdomTree Renewable Energy UCITS ETF WRNW
- L&G Clean Energy UCITS ETF RENW
Metrics for the Worst-Performing ETFs
Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF
- : N/AMorningstar Rating
- : 0.49%Expense Ratio
- : China Equity - A SharesMorningstar Category
The worst-performing ETF in the third quarter was the €179.5 million Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF. The passively managed Invesco ETF declined 27.94%, falling further than the average China equity - a shares fund, which dropped 12.10%. Over the last year, the fund has climbed 7.84%, performing roughly in line with the 7.86% gain on funds in its category, placing it in the 52nd percentile for the period.
The Neutral-rated Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF was launched in June 2024.
VanEck Rare Earth and Strategic Metals UCITS ETF
- : ★Morningstar Rating
- : 0.59%Expense Ratio
- : Equity Natural ResourcesMorningstar Category
The €974.4 million VanEck Rare Earth and Strategic Metals UCITS ETF was the second worst-performing ETF in the third quarter, with a 25.82% loss. The passively managed VanEck ETF lagged the 3.47% gain on the average fund in Morningstar’s equity natural resources category for the quarter. Over the last year, the fund has gained 3.04%, underperforming the 26.68% gain on funds in its category, placing it in the 90th percentile for the period.
The Neutral-rated VanEck Rare Earth and Strategic Metals UCITS ETF was launched in September 2021.
Invesco Solar Energy UCITS ETF
- : ★Morningstar Rating
- : 0.69%Expense Ratio
- : Equity Alternative EnergyMorningstar Category
The third worst-performing ETF in the third quarter was the €110.6 million Invesco Solar Energy UCITS ETF. The passively managed Invesco ETF declined 24.95%, falling further than the average equity alternative energy fund, which dropped 11.75%. Over the last year, the fund has climbed 4.30%, underperforming the 19.94% gain on funds in its category, placing it in the 90th percentile for the period.
The Invesco Solar Energy UCITS ETF has a Negative Morningstar Medalist Rating, meaning that Morningstar analysts expect it to underperform the average fund in its category over a market cycle.
First Trust RBA American Industrial Renaissance UCITS ETF Class
- : N/AMorningstar Rating
- : 0.7%Expense Ratio
- : Equity Industrial MaterialsMorningstar Category
The €227.6 million First Trust RBA American Industrial Renaissance UCITS ETF Class ranked fourth for the quarter, falling 22.06%. The First Trust ETF, which is passively managed, fell further than the 3.76% loss on the average equity industrial materials fund. Over the past year, the fund has risen 10.34%, performing roughly in line with the 10.20% gain on funds in its category, placing it in the 50th percentile for the period.
The Negative-rated First Trust RBA American Industrial Renaissance UCITS ETF Class was launched in July 2025.
First Trust Nasdaq Clean Edge Green Energy UCITS ETF
- : ★Morningstar Rating
- : 0.6%Expense Ratio
- : Equity Alternative EnergyMorningstar Category
The €33.7 million First Trust Nasdaq Clean Edge Green Energy UCITS ETF was the fifth worst-performing ETF in the third quarter, with a 21.39% loss. The passively managed First Trust ETF fell further than the 11.75% loss on the average fund in Morningstar’s equity alternative energy category for the quarter. Over the last year, the fund has gained 19.89%, performing roughly in line with the 19.94% gain on funds in its category, placing it in the 44th percentile for the period.
The Neutral-rated First Trust Nasdaq Clean Edge Green Energy UCITS ETF was launched in March 2017.
VanEck Space Innovators UCITS ETF
- : ★★★★Morningstar Rating
- : 0.55%Expense Ratio
- : Equity Industrial MaterialsMorningstar Category
The €1.6 billion VanEck Space Innovators UCITS ETF ranked sixth for the quarter, falling 21.04%. The VanEck ETF, which is passively managed, fell further than the 3.76% loss on the average equity industrial materials fund. Over the past year, the fund has risen 41.50%, outperforming the 10.20% gain on funds in its category, placing it in the fourth percentile for the period.
The Neutral-rated VanEck Space Innovators UCITS ETF was launched in June 2022.
Defiance Memory UCITS ETF
- : N/AMorningstar Rating
- : 0.69%Expense Ratio
- : Equity TechnologyMorningstar Category
The seventh worst-performing ETF in the third quarter was the €103.5 million Defiance Memory UCITS ETF. The passively managed HANetf ETF declined 17.44%, falling further than the average equity technology fund, which dropped 0.37%. The fund was first launched in June 2026, and as a result, it does not have a one-year record.
The Defiance Memory UCITS ETF has not yet been awarded a Morningstar Medalist Rating.
iShares Global Clean Energy Transition UCITS ETF
- : ★★Morningstar Rating
- : 0.65%Expense Ratio
- : Equity Alternative EnergyMorningstar Category
The €3.1 billion iShares Global Clean Energy Transition UCITS ETF ranked eighth for the quarter, falling 16.36%. The iShares ETF, which is passively managed, fell further than the 11.75% loss on the average equity alternative energy fund. Over the past year, the fund has risen 15.08%, underperforming the 19.94% gain on funds in its category, placing it in the 57th percentile for the period.
The Neutral-rated iShares Global Clean Energy Transition UCITS ETF was launched in July 2007.
WisdomTree Renewable Energy UCITS ETF
- : ★★Morningstar Rating
- : 0.45%Expense Ratio
- : Equity Alternative EnergyMorningstar Category
The ninth worst-performing ETF in the third quarter was the €32.1 million WisdomTree Renewable Energy UCITS ETF. The passively managed WisdomTree ETF declined 15.43%, falling further than the average equity alternative energy fund, which dropped 11.75%. Over the last year, the fund has climbed 10.67%, underperforming the 19.94% gain on funds in its category, placing it in the 81st percentile for the period.
The Neutral-rated WisdomTree Renewable Energy UCITS ETF was launched in June 2023.
L&G Clean Energy UCITS ETF
- : ★★★★Morningstar Rating
- : 0.49%Expense Ratio
- : Equity Alternative EnergyMorningstar Category
The €627.5 million L&G Clean Energy UCITS ETF was the tenth worst-performing ETF in the third quarter, with a 14.64% loss. The passively managed Legal & General ETF fell further than the 11.75% loss on the average fund in Morningstar’s equity alternative energy category for the quarter. Over the last year, the fund has gained 27.86%, outperforming the 19.94% gain on funds in its category, placing it in the 20th percentile for the period.
The Neutral-rated L&G Clean Energy UCITS ETF was launched in November 2020.
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.
