Exchange-traded funds, or ETFs, are instruments for investors to track popular indices or leverage experienced manager choices in an attempt to beat the market. The best ones serve as low-cost building blocks for a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In February 2024, the top-performing stock ETFs included equity technology fund VanEck Crypto & Blockchain Innovators UCITS ETF(DAPP)and iShares Blockchain Technology UCITS ETF(BLKC). The month’s worst performers included Sprott Uranium Miners UCITS ETF Accumulating(URNM)and AuAg ESG Gold Mining UCITS ETF(ESGO).
Screening for the Best- and Worst-Performing ETFs
To find the month's best- and worst-performing ETFs, we screened those in Morningstar's Equity, Allocation, or Fixed-Income categories that are available for sale the UK. We excluded funds with less than $25 million in total assets.
Returns for the best- and worst-performing ETFs ranged from 29.6% to -10.2%, a gap of 39.7 percentage points.
The 10 Best-Performing ETFs:
1. VanEck Crypto & Blockchain Innovators UCITS ETF(DAPP)
2. iShares Blockchain Technology UCITS ETF(BLKC)
3. Invesco CoinShares Global Blockchain UCITS ETF(BCHN)
4. Amundi MSCI Semiconductors ESG Screened UCITS ETF(CHIP)
5. VanEck Defense ETF(DFNS)
6. Amundi MSCI China Tech ESG Screened UCITS ETF(CC1)
7. Invesco STOXX Europe 600 Optimised Automobiles & Parts UCITS ETF(SC0P)
8. Lyxor Index ETF - Lyxor STOXX Europe 600 Automobiles & Parts UCITS ETF(AUT)
9. iShares STOXX Europe 600 Automobiles & Parts UCITS ETF (DE)(EXV5)
10. VanEck Semiconductor UCITS ETF(SMH)
The 10 Worst-Performing ETFs:
1. Sprott Uranium Miners UCITS ETF Accumulating(URNM)
2. AuAg ESG Gold Mining UCITS ETF(ESGO)
3. BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped(EEE)
4. Global X Uranium UCITS ETF(URNU)
5. iShares European Property Yield UCITS ETF(IPRP)
6. SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF(ZPRP)
7. iShares STOXX Europe 600 Real Estate UCITS ETF (DE)(EXI5)
8. Xtrackers FTSE Developed Europe Real Estate UCITS ETF(D5BK)
9. Amundi Index Solutions - Amundi FTSE EPRA Europe Real Estate(EPRE)
10. Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF(SC0W)
Metrics for the Best-Performing Stock ETFs
VanEck Crypto & Blockchain Innovators UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.65%
• Morningstar Category: Equity Technology
The £107 million VanEck Crypto & Blockchain Innovators UCITS ETF was the best-performing ETF in February with a 29.56% return. The return on the passively managed VanEck ETF topped the 7.5% gain on the average fund in Morningstar’s equity technology category for the month. Looking back over the last 12 months, the VanEck Crypto & Blockchain Innovators UCITS ETF has returned 121.74%, outperforming the 27.93% gain on the average fund in its category, leaving the ETF in the first percentile for performance.
The VanEck Crypto & Blockchain Innovators UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in April 2021.
iShares Blockchain Technology UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.50%
• Morningstar Category: Equity Technology
The second-best performing ETF in February was the £42 million iShares Blockchain Technology UCITS ETF. The passively managed iShares ETF returned 25.29% in February, outperforming the average equity technology fund, which gained 7.5% during the month. Looking back over the last 12 months, the iShares Blockchain Technology UCITS ETF has returned 92.17%, outperforming the 27.93% return on the average fund in its category, leaving the ETF in the first percentile for performance.
The Gold-rated iShares Blockchain Technology UCITS ETF was launched in September 2022.
Invesco CoinShares Global Blockchain UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.65%
• Morningstar Category: Equity Technology
The £529 million Invesco CoinShares Global Blockchain UCITS ETF ranked third for the month, returning 22.42% in February. The Invesco ETF, which is passively managed, topped the 7.5% average return on funds in the equity technology category for February. Over the last 12 months, the Invesco ETF has returned 41.14%, ahead of the 27.93% gain on the average fund in its category, leaving the ETF in the 30th percentile for performance.
The Invesco CoinShares Global Blockchain UCITS ETF, launched in March 2019, has a Morningstar Medalist Rating of Bronze.
Amundi MSCI Semiconductors ESG Screened UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.45%
• Morningstar Category: Equity Technology
With a 16.32% return, the £258 million Amundi MSCI Semiconductors ESG Screened UCITS ETF ranked fourth in February among ETFs. The passively managed Amundi ETF outperformed the 7.5% return on the average equity technology fund. Over the last 12 months, the fund has gained 78.24%, ahead of the 27.93% return on funds in its category, placing it in the second percentile for the period.
The Amundi MSCI Semiconductors ESG Screened UCITS ETF takes environmental, social, and governancecriteriainto consideration. This fund has a Morningstar Medalist Rating of Silver.
VanEck Defense ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.55%
• Morningstar Category: Equity Industrial Materials
The fifth-best performing ETF was the £216 million VanEck Defense ETF, which gained 14.9% in February. This passively managed VanEck ETF beat the 4.52% average return on funds in the equity industrial materials category for the month. The fund was first launched in March 2023, and as a result, it does not have a one-year track record.
The VanEck Defense ETF has a Morningstar Medalist Rating of Bronze.
Amundi MSCI China Tech ESG Screened UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.55%
• Morningstar Category: China Equity
The £43 million Amundi MSCI China Tech ESG Screened UCITS ETF was the sixth-best performing UK ETF in February with a 13.28% return. The return on the passively managed Amundi ETF topped the 9.19% gain on the average fund in Morningstar’s China equity category for the month. Looking back over the last 12 months, the Amundi MSCI China Tech ESG Screened UCITS ETF has fallen 23.98%, underperforming the 21.65% loss on the average fund in its category, leaving the ETF in the 65th percentile for performance.
The Neutral-rated Amundi MSCI China Tech ESG Screened UCITS ETF was launched in April 2018.
Invesco STOXX Europe 600 Optimised Automobiles & Parts UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.20%
• Morningstar Category: Equity Consumer Goods & Services
The seventh-best performing ETF in February was the £26 million Invesco STOXX Europe 600 Optimised Automobiles & Parts UCITS ETF. The passively managed Invesco ETF returned 13.21% in February, outperforming the average equity consumer goods & services fund, which gained 5.17% during the month. Looking back over the last 12 months, the Invesco STOXX Europe 600 Optimised Automobiles & Parts UCITS ETF has returned 14.83%, outperforming the 5.94% return on the average fund in its category, leaving the ETF in the 22nd percentile for performance.
The Invesco STOXX Europe 600 Optimised Automobiles & Parts UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in July 2009.
Lyxor Index ETF - Lyxor STOXX Europe 600 Automobiles & Parts UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.30%
• Morningstar Category: Equity Consumer Goods & Services
The £41 million Lyxor Index ETF - Lyxor STOXX Europe 600 Automobiles & Parts UCITS ETF ranked eighth for the month, returning 13.16% in February. The Amundi ETF, which is passively managed, topped the 5.17% average gain on funds in the equity consumer goods & services category for February. Over the last 12 months, the Amundi ETF has returned 14.89%, ahead of the 5.94% return on the average fund in its category, leaving the ETF in the 21st percentile for performance.
The Bronze-rated Lyxor Index ETF - Lyxor STOXX Europe 600 Automobiles & Parts UCITS ETF was launched in January 2019.
iShares STOXX Europe 600 Automobiles & Parts UCITS ETF (DE)
• Morningstar Rating: 2 stars
• Expense Ratio: 0.45%
• Morningstar Category: Equity Consumer Goods & Services
With a 13.11% gain, the £118 million iShares STOXX Europe 600 Automobiles & Parts UCITS ETF (DE) ranked ninth in February among ETFs. The passively managed iShares ETF outperformed the 5.17% return on the average equity consumer goods & services fund. Over the last 12 months, the fund has returned 14.79%, ahead of the 5.94% return on funds in its category, placing it in the 22nd percentile for the period.
The iShares STOXX Europe 600 Automobiles & Parts UCITS ETF (DE), launched in July 2002, has a Morningstar Medalist Rating of Silver.
VanEck Semiconductor UCITS ETF
• Morningstar Rating: 5 stars
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The tenth-best performing stock ETF was the £1.3 billion VanEck Semiconductor UCITS ETF, which gained 12.64% in February. This passively managed VanEck ETF beat the 7.5% average return on funds in the equity technology category for the month. Over the past year, the VanEck Semiconductor UCITS ETF rose 66.5%, outperforming the 27.93% return on the average fund in its category and placing it in the fourth percentile.
The VanEck Semiconductor UCITS ETF has a Morningstar Medalist Rating of Silver. It was launched in December 2020.
Metrics for the Worst-Performing Stock ETFs
Sprott Uranium Miners UCITS ETF Accumulating
• Morningstar Rating: N/A
• Expense Ratio: 0.85%
• Morningstar Category: Equity Natural Resources
The worst-performing ETF in February 2024 was the £216 million Sprott Uranium Miners UCITS ETF Accumulating, which lost 10.15% in February. The passively managed HANetf ETF underperformed the average 1.33% loss on funds in the equity natural resources category in February. Over the past 12 months, the Sprott Uranium Miners UCITS ETF Accumulating rose 43.7%, placing it in the second percentile within its category and outperforming the 9.68% loss on the average fund in its category.
The Sprott Uranium Miners UCITS ETF Accumulating, launched in May 2022, has a Morningstar Medalist Rating of Bronze.
AuAg ESG Gold Mining UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.60%
• Morningstar Category: Equity Precious Metals
With a 9.39% loss, the £25 million AuAg ESG Gold Mining UCITS ETF was the second-worst performing ETF in our list for February. The passively managed HANetf-run ETF underperformed the average 6.1% loss on funds in the equity precious metals category in February. Over the past 12 months, the AuAg ESG Gold Mining UCITS ETF lost 15.45%, placing it in the 82nd percentile within its category and underperforming the 10.66% loss on the average fund in its category.
The Neutral-rated AuAg ESG Gold Mining UCITS ETF was launched in July 2021.
BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped
• Morningstar Rating: 3 stars
• Expense Ratio: 0.28%
• Morningstar Category: Property - Indirect Eurozone
The third-worst performing ETF in February was the £160 million BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped, which fell 8.48%. The BNP Paribas ETF, which is passively managed, performed roughly in line with the average 7.71% loss on funds in the property - indirect Eurozone category in February. Over the past 12 months, the ETF fell 9.98% to place in the 71st percentile within its category, underperforming the category's average 1-year loss of 8.13%.
The BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped has a Morningstar Medalist Rating of Neutral. It was launched in July 2004.
Global X Uranium UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.65%
• Morningstar Category: Equity Natural Resources
The £140 million Global X Uranium UCITS ETF was the fourth-worst performing ETF in February, with a loss of 7.93%. The passively managed Global X ETF performed worse the average 1.33% loss on funds in the equity natural resources category in February. Over the past year, the ETF gained 31.53% to land in the third percentile within its category, outperforming the category's average 1-year loss of 9.68%.
The Silver-rated Global X Uranium UCITS ETF was launched in April 2022.
iShares European Property Yield UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.40%
• Morningstar Category: Property - Indirect Europe
Fifth-worst was the £1.1 billion iShares European Property Yield UCITS ETF, which lost 7.91% in February. The passively managed iShares ETF fell below the average 6.69% decline on funds in the property - indirect Europe category for the month. Over the past year, the iShares European Property Yield UCITS ETF fell 4.28%, finishing the 12-month period in the 29th percentile within the category. It edged out the category's average 1-year loss of 5.45%.
The iShares European Property Yield UCITS ETF has a Morningstar Medalist Rating of Neutral. It was launched in November 2005.
SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.30%
• Morningstar Category: Property - Indirect Europe
The sixth-worst performing ETF in February 2024 was the £76 million SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF, which lost 7.87% in February. The passively managed State Street ETF underperformed the average 6.69% loss on funds in the property - indirect Europe category in February. Over the past 12 months, the SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF fell 4.1%, placing it in the 25th percentile within its category and declining less than the 5.45% loss on the average fund in its category.
The SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF has a Morningstar Medalist Rating of Gold. It was launched in August 2015.
iShares STOXX Europe 600 Real Estate UCITS ETF (DE)
• Morningstar Rating: 2 stars
• Expense Ratio: 0.45%
• Morningstar Category: Property - Indirect Europe
With a 7.52% loss, the £67 million iShares STOXX Europe 600 Real Estate UCITS ETF (DE) was the seventh-worst performing ETF in our list for February. The passively managed iShares ETF performed roughly in line with the average 6.69% loss on funds in the property - indirect Europe category in February. Over the past 12 months, the iShares STOXX Europe 600 Real Estate UCITS ETF (DE) lost 4.53%, placing it in the 37th percentile within its category and roughly in line with the 5.45% loss on the average fund in its category.
The iShares STOXX Europe 600 Real Estate UCITS ETF (DE) has a Morningstar Medalist Rating of Neutral.
Xtrackers FTSE Developed Europe Real Estate UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.13%
• Morningstar Category: Property - Indirect Europe
The eighth-worst performing ETF in February was the £563 million Xtrackers FTSE Developed Europe Real Estate UCITS ETF, which fell 7.5%. The Xtrackers ETF, which is passively managed, performed roughly in line with the average 6.69% loss on funds in the property - indirect Europe category in February. Over the past 12 months, the ETF fell 5.48% to place in the 47th percentile within its category, roughly in line with the category's average 1-year loss of 5.45%.
The Xtrackers FTSE Developed Europe Real Estate UCITS ETF, launched in March 2010, has a Morningstar Medalist Rating of Silver.
Amundi Index Solutions - Amundi FTSE EPRA Europe Real Estate
• Morningstar Rating: 2 stars
• Expense Ratio: 0.35%
• Morningstar Category: Property - Indirect Europe
The £60 million Amundi Index Solutions - Amundi FTSE EPRA Europe Real Estate was the ninth-worst performing ETF in February, with a decline of 7.49%. The passively managed Amundi ETF performed roughly in line with the average 6.69% loss on funds in the property - indirect Europe category in February. Over the past year, the ETF dropped 5.59% to land in the 51st percentile within its category, roughly in line with the category's average 1-year loss of 5.45%.
The Amundi Index Solutions - Amundi FTSE EPRA Europe Real Estate has a Morningstar Medalist Rating of Silver. It was launched in January 2018.
Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 0.20%
• Morningstar Category: Equity Industrial Materials
Tenth-worst was the £30 million Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF, which lost 6.36% in February. The passively managed Invesco ETF underperformed the average 4.52% return on funds in the equity industrial materials category for the month. Over the past year, the Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF fell 16.29%, finishing the 12-month period in the 97th percentile within the equity industrial materials category. It underperformed the category's average 1-year return of 7.14%.
The Bronze-rated Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF was launched in July 2009.
What Are ETFs?
Exchange-traded fundsare investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional open-end funds which can only be bought or sold at a single price each day. Historically, ETFs tracked indices, 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 an ease of buying and selling.
The Best ETFs: More Ideas to Consider
Investors who would like to find more of the top-performing or cheapest ETFs can do the following:
Read the latestarticles on ETFs.
Use theETF screenerto 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.
Compare funds and ETFsside by side and easily follow their valuations, ratings, and fees.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
As part of our mission to put more information into the hands of investors, this article was compiled from Morningstar’s data and independent research using automation technology. The original article was written by Morningstar reporters and editors. This updated version was reviewed by an editor.
