Stock exchange-traded funds, or equity 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 July 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 month’s worst-performing stock ETFs, we screened those in Morningstar’s equity, allocation, or fixed-income categories that are available in Norway. We excluded ETFs with less than USD 25 million (€21.7 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.
The 10 Worst-Performing ETFs for July 2026
- Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF CN50
- VanEck Rare Earth and Strategic Metals UCITS ETF REMX
- VanEck Space Innovators UCITS ETF JEDI
- iShares MSCI Global Semiconductors UCITS ETF SEMI
- First Trust Nasdaq Clean Edge Green Energy UCITS ETF QCLU
- VanEck Semiconductor UCITS ETF SMH
- Invesco Solar Energy UCITS ETF ISUN
- WisdomTree Quantum Computing UCITS ETF WQTM
- iShares Global Clean Energy Transition UCITS ETF INRG
- iShares MSCI Korea UCITS ETF (Dist) IKOR
Metrics for the Worst-Performing Stock ETFs
Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF
- : N/AMorningstar Rating
- : 0.49%Expense Ratio
- : China Equity - A SharesMorningstar Category
The €245.2 million Invesco Markets II PLC - Invesco ChiNext 50 UCITS ETF ranked first for the month, falling 26.23%. The Invesco ETF, which is passively managed, fell further than the 10.43% loss on the average China equity - a shares fund. Over the past year, the fund has risen 59.87%, outperforming the 27.40% gain on funds in its category, placing it in the sixth 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: ★
- Expense Ratio: 0.59%
- Morningstar Category: Equity Natural Resources
The €1 billion VanEck Rare Earth and Strategic Metals UCITS ETF was the second worst-performing ETF in July, with a 25.14% loss. The passively managed VanEck ETF fell further than the 0.74% loss on the average fund in Morningstar’s equity natural resources category for the month. Over the last year, the fund has gained 34.58%, underperforming the 44.22% gain on funds in its category, placing it in the 69th percentile for the period.
The Neutral-rated VanEck Rare Earth and Strategic Metals UCITS ETF was launched in September 2021.
VanEck Space Innovators UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.55%
- Morningstar Category: Equity Industrial Materials
The third worst-performing ETF in July was the €1.6 billion VanEck Space Innovators UCITS ETF. The passively managed VanEck ETF declined 22.37%, falling further than the average equity industrial materials fund, which dropped 1.63%. Over the last year, the fund has climbed 59.69%, outperforming the 18.49% gain on funds in its category, placing it in the fourth percentile for the period.
The VanEck Space Innovators 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.
iShares MSCI Global Semiconductors UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.35%
- Morningstar Category: Equity Technology
The €4.9 billion iShares MSCI Global Semiconductors UCITS ETF ranked fourth for the month, falling 21.30%. The iShares ETF, which is passively managed, fell further than the 9.58% loss on the average equity technology fund. Over the past year, the fund has risen 126.31%, outperforming the 30.61% gain on funds in its category, placing it in the second percentile for the period.
The Neutral-rated iShares MSCI Global Semiconductors UCITS ETF was launched in August 2021.
First Trust Nasdaq Clean Edge Green Energy UCITS ETF
- Morningstar Rating: ★
- Expense Ratio: 0.6%
- Morningstar Category: Equity Alternative Energy
The fifth worst-performing ETF in July was the €41.4 million First Trust Nasdaq Clean Edge Green Energy UCITS ETF. The passively managed First Trust ETF declined 20.60%, falling further than the average equity alternative energy fund, which dropped 9.85%. Over the last year, the fund has climbed 42.74%, outperforming the 31.17% gain on funds in its category, placing it in the 16th percentile for the period.
The First Trust Nasdaq Clean Edge Green Energy UCITS ETF has not yet been awarded a Morningstar Medalist Rating.
VanEck Semiconductor UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.35%
- Morningstar Category: Equity Technology
The €7.4 billion VanEck Semiconductor UCITS ETF was the sixth worst-performing ETF in July, with a 19.92% loss. The passively managed VanEck ETF fell further than the 9.58% loss on the average fund in Morningstar’s equity technology category for the month. Over the last year, the fund has gained 110.74%, outperforming the 30.61% gain on funds in its category, placing it in the third percentile for the period.
The Neutral-rated VanEck Semiconductor UCITS ETF was launched in December 2020.
Invesco Solar Energy UCITS ETF
- Morningstar Rating: ★
- Expense Ratio: 0.69%
- Morningstar Category: Equity Alternative Energy
The seventh worst-performing ETF in July was the €167 million Invesco Solar Energy UCITS ETF. The passively managed Invesco ETF declined 16.83%, falling further than the average equity alternative energy fund, which dropped 9.85%. Over the last year, the fund has climbed 32.78%, outperforming the 31.17% gain on funds in its category, placing it in the 36th percentile for the period.
The Negative-rated Invesco Solar Energy UCITS ETF was launched in August 2021.
WisdomTree Quantum Computing UCITS ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.5%
- Morningstar Category: Equity Technology
The €306.5 million WisdomTree Quantum Computing UCITS ETF was the eighth worst-performing ETF in July, with a 14.76% loss. The passively managed WisdomTree ETF fell further than the 9.58% loss on the average fund in Morningstar’s equity technology category for the month. The fund was first launched in August 2025, and as a result, it does not have a one-year record.
The WisdomTree Quantum Computing UCITS ETF has not yet been awarded a Morningstar Medalist Rating.
iShares Global Clean Energy Transition UCITS ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.65%
- Morningstar Category: Equity Alternative Energy
The ninth worst-performing ETF in July was the €3.2 billion iShares Global Clean Energy Transition UCITS ETF. The passively managed iShares ETF declined 14.67%, falling further than the average equity alternative energy fund, which dropped 9.85%. Over the last year, the fund has climbed 31.29%, performing roughly in line with the 31.17% gain on funds in its category, placing it in the 41st percentile for the period.
The Neutral-rated iShares Global Clean Energy Transition UCITS ETF was launched in July 2007.
iShares MSCI Korea UCITS ETF (Dist)
- Morningstar Rating: ★★
- Expense Ratio: 0.65%
- Morningstar Category: Korea Equity
The €967.3 million iShares MSCI Korea UCITS ETF (Dist) ranked tenth for the month, falling 14.52%. The iShares ETF, which is passively managed, edged out the 24.15% loss on the average Korea equity fund. Over the past year, the fund has risen 136.49%, outperforming the 85.79% gain on funds in its category, placing it in the ninth percentile for the period.
The Neutral-rated iShares MSCI Korea UCITS ETF (Dist) was launched in November 2005.
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.
