Worst Performing Index Funds in 5 Years

20 ETF Funds with Worst 5-Year Returns

According to an article in Financial Planning this week, Morningstar Direct reported on the worst performing index funds over the past five years.

With an average loss of 9.51%, the 20 funds with the worst five-year returns are all exchange traded Funds (ETFs). Two are short ETFs, 15 are in energy and commodity sector investments, one invests in Mexico, another in Spain, and the remaining are in European banks, according to Morningstar data.

See below for the 20 worst-performing passive funds ranked by their five-year annualized returns through June 7, according to Morningstar.

• Global X MLP & Energy Infrastructure ETF (MLPX) -2.88%
• iShares MSCI Spain Capped ETF (EUFN) -3.24%
• iShares MSCI Spain (EWP) -4.24%
• iShares Global Energy ETF (IXC) -4.64%
• Alerian MLP ETF (AMLP) -4.90%
• iShares Silver Trust (SLV) -5.24 %
• Global X MLP ETF (MLPA) -5.68%
• Energy Select Sector SPDR ETF (XLE) -6.13%
• iShares MSCI Mexico Capped ETF (EWW) -6.79%
• iShares North American Natural Res ETF (IGE) -7.18%
• iShares US Energy ETF (IYE) -7.28%
• Vanguard Energy ETF (VDE) -7.45%
• Invesco DB Commodity Tracking (DBC) -9.95%
• ProShares Short S&P500 (SH) -10.03%
• Aberdeen Standard Phys Platinum Shrs ETF (PPLT) -11.07%
• iShares S&P GSCI Commodity-Indexed Trust (GSG) -14.55%
• ProShares Short QQQ (PSQ) -15.23%
• SPDR S&P Oil & Gas Explor & Prodtn ETF (XOP) -$16.98%
• United States Oil (USO)-21.46%
• VanEck Vectors Oil Services ETF (OIH) -22.57%

The White Law Group is currently investigating the liability that FINRA registered brokerage firms may have for recommending high risk Exchange Traded to investors.

Risks of Exchange-traded Funds

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day.

Many of these investments are packaged as a way for investors to avoid the volatility of the market or capture growth in a particular sector.  In reality, these structured investments are just ways for the industry to increase revenues generated from the creation, sale, and management of these products.

Brokerage firms have a duty to recommend only investments that are appropriate for the client based on the client’s age, investment experience, net worth, and investment objectives.

If your financial advisor has over-concentrated your assets in any sector or investment, and you suffered substantial losses, you may have a claim to recover your losses through FINRA arbitration.

For a free consultation, please call The White Law Group’s office at 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit https://whitesecuritieslaw.com.

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