Exchange-traded funds, or ETFs, 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 May 2025, the worst performers included Invesco Health Care S&P US Select Sector UCITS ETF XLVS and iShares S&P 500 Health Care Sector UCITS ETF USD Acc IUHC. 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 month’s worst-performing ETFs, we screened those in Morningstar’s equity, allocation, or fixed-income categories that are available in the UK. We excluded exchange-traded notes, known as ETNs, and ETFs with less than $25 million (£18.4 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.
Among the worst-performing ETFs, two were from the equity biotechnology category, where funds fell 3.07% in May.
The 10 Worst-Performing ETFs for May 2025
- Invesco Health Care S&P US Select Sector UCITS ETF XLVS
- iShares S&P 500 Health Care Sector UCITS ETF USD (Acc) IUHC
- SPDR S&P US Health Care Select Sector UCITS ETF SXLV
- Invesco S&P World Health Care ESG UCITS ETF WHCE
- Xtrackers MSCI USA Health Care UCITS ETF XUHC
- iShares Nasdaq US Biotechnology UCITS ETF BTEC
- Invesco NASDAQ Biotech UCITS ETF SBIO
- VanEck Rare Earth and Strategic Metals UCITS ETF REMX
- Amundi MSCI World Health Care UCITS ETF HLTW
- Xtrackers MSCI World Health Care UCITS ETF XDWH
Metrics for the Worst-Performing ETFs
Invesco Health Care S&P US Select Sector UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.14%
- Morningstar Category: Equity Healthcare
The worst-performing ETF in May was the £257 million Invesco Health Care S&P US Select Sector UCITS ETF, which lost 6.48%. The passively managed Invesco ETF fell further than the average 2.35% loss on funds in the equity healthcare category in May. Over the past 12 months, the Invesco Health Care S&P US Select Sector UCITS ETF fell 11.63%, placing it in the 57th percentile within its category and falling further than the 9.03% loss on the average fund.
The Invesco Health Care S&P US Select Sector UCITS ETF, launched in December 2009, has a Morningstar Medalist Rating of Bronze.
iShares S&P 500 Health Care Sector UCITS ETF USD (Acc)
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.15%
- Morningstar Category: Equity Healthcare
With a 6.48% loss, the £1.7 billion iShares S&P 500 Health Care Sector UCITS ETF USD was the second-worst performing ETF on our list for May. The passively managed iShares ETF fell further than the average 2.35% loss on funds in the equity healthcare category. Over the past year, the iShares S&P 500 Health Care Sector UCITS ETF USD lost 11.63%, placing it in the 57th percentile within its category and falling further than the 9.03% loss on the average fund.
The Bronze-rated iShares S&P 500 Health Care Sector UCITS ETF USD was launched in November 2015.
SPDR S&P US Health Care Select Sector UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.15%
- Morningstar Category: Equity Healthcare
The third-worst performing ETF in May was the £244 million SPDR S&P US Health Care Select Sector UCITS ETF, which fell 6.47%. The State Street ETF, which is passively managed, fell further than the average 2.35% loss on funds in the equity healthcare category. Over the past 12 months, the ETF fell 11.62% to place in the 57th percentile within its category, falling further than the category’s average loss of 9.03%.
The SPDR S&P US Health Care Select Sector UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in July 2015.
Invesco S&P World Health Care ESG UCITS ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.18%
- Morningstar Category: Equity Healthcare
The £78 million Invesco Markets II PLC - Invesco S&P World Health Care ESG UCITS ETF was the fourth-worst performing ETF in May, with a loss of 6.22%. The passively managed Invesco ETF performed worse than the average 2.35% loss on funds in the equity healthcare category. Over the past year, the ETF dropped 11.96% to land in the 60th percentile within its category, dropping further than the category’s average one-year loss of 9.03%.
The Bronze-rated Invesco Markets II PLC - Invesco S&P World Health Care ESG UCITS ETF was launched in April 2023.
Xtrackers MSCI USA Health Care UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.12%
- Morningstar Category: Equity Healthcare
Fifth-worst was the £454 million Xtrackers MSCI USA Health Care UCITS ETF, which lost 6.05% in May. The passively managed Xtrackers ETF fell further than the average 2.35% decline on funds in the equity healthcare category. Over the past 12 months, the Xtrackers MSCI USA Health Care UCITS ETF fell 11.00%, finishing in the 49th percentile within its category. It dropped further than the category’s average loss of 9.03%.
The Xtrackers MSCI USA Health Care UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in September 2017.
iShares Nasdaq US Biotechnology UCITS ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.35%
- Morningstar Category: Equity Biotechnology
The sixth-worst performing ETF in May was the £321 million iShares Nasdaq US Biotechnology UCITS ETF, which lost 5.03%. The passively managed iShares ETF fell further than the average 3.07% loss on funds in the equity biotechnology category. Over the past year, the iShares Nasdaq US Biotechnology UCITS ETF fell 12.09%, placing it in the 43rd percentile within its category and roughly in line with the 11.30% loss on the average fund.
The iShares Nasdaq US Biotechnology UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in October 2017.
Invesco NASDAQ Biotech UCITS ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.40%
- Morningstar Category: Equity Biotechnology
With a 5.03% loss, the £194 million Invesco NASDAQ Biotech UCITS ETF was the seventh-worst performing ETF on our list for May. The passively managed Invesco ETF fell further than the average 3.07% loss on funds in the equity biotechnology category. Over the past 12 months, the Invesco NASDAQ Biotech UCITS ETF lost 12.09%, placing it in the 44th percentile within its category and putting it roughly in line with the 11.30% loss on the average fund.
The Invesco NASDAQ Biotech UCITS ETF, launched in November 2014, has a Morningstar Medalist Rating of Bronze.
VanEck Rare Earth and Strategic Metals UCITS ETF
- Morningstar Rating: ★
- Expense Ratio: 0.59%
- Morningstar Category: Equity Natural Resources
The eighth-worst performing ETF in May was the £77 million VanEck Rare Earth and Strategic Metals UCITS ETF, which fell 4.77%. The VanEck ETF, which is passively managed, underperformed the average 4.90% gain on funds in the equity natural resources category. Over the past year, the ETF fell 32.26% to place in the 99th percentile within its category, dropping further than the average one-year loss of 9.72%.
The VanEck Rare Earth and Strategic Metals UCITS ETF, launched in September 2021, has a Morningstar Medalist Rating of Bronze.
Amundi MSCI World Health Care UCITS ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.30%
- Morningstar Category: Equity Healthcare
The £604 million Amundi MSCI World Health Care UCITS ETF was the ninth-worst performing ETF in May, with a decline of 4.55%. The passively managed Amundi ETF performed worse than the average 2.35% loss on funds in the equity healthcare category. Over the past 12 months, the ETF dropped 10.67% to land in the 47th percentile, falling further than the category’s average loss of 9.03%.
The Amundi MSCI World Health Care UCITS ETF has a Morningstar Medalist Rating of Silver. It was launched in August 2010.
Xtrackers MSCI World Health Care UCITS ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.25%
- Morningstar Category: Equity Healthcare
Tenth-worst was the £1.9 billion Xtrackers MSCI World Health Care UCITS ETF, which lost 4.54% in May. The passively managed Xtrackers ETF fell further than the average 2.35% loss on funds in the equity healthcare category for the month. Over the past year, the Xtrackers MSCI World Health Care UCITS ETF fell 10.50%, finishing the 12-month period in the 44th percentile within the equity healthcare category. It fell further than the category’s average one-year loss of 9.03%.
The Gold-rated Xtrackers MSCI World Health Care UCITS ETF was launched in March 2016.
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:
• 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.
• Compare funds and ETFs side 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.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.