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Screening for the Worst-Performing ETFs
To find the month’s worst-performing ETFs, we screened equity, allocation, and fixed income funds that trade within Canada for those that have at least C$10 million in total assets. We narrowed the list to only ETFs with parent pillars for their Morningstar Medalist Ratings of average or above, meaning our analysts believe they’re backed by industry-standard asset management companies. We also excluded exchange traded notes, known as ETNs.
The 10 Worst-Performing ETFs for April 2024:
iShares US Small Cap Index ETF (CAD-Hedged) XSU
Evolve Innovation Index Fund EDGE
Evolve Future Leadership Fund LEAD
Middlefield Real Estate Dividend ETF MREL
Vanguard FTSE Canadian Capped REIT Index ETF VRE
iShares S&P/TSX Capped REIT Index ETF XRE
TD Active Global Real Estate Equity ETF TGRE
Hamilton US Mid-Cap Financials ETF HUM
iShares S&P US Small-Cap Index ETF (CAD-Hedged) XSMH
Global X Global Sustainability Leaders Index ETF ETHI
Metrics for the Worst-Performing ETFs
iShares US Small Cap Index ETF (CAD-Hedged)
Morningstar Rating: 1 star
Expense Ratio: 0.35%
Morningstar Category: US Small/Mid Cap Equity
The worst-performing ETF in April was the C$556 million iShares US Small Cap Index ETF (CAD-Hedged), which lost 6.99%. The passively managed iShares ETF underperformed the average 3.30% gain on funds in the US small-cap/mid cap equity category in April. Over the past 12 months, the iShares US Small Cap Index ETF (CAD-Hedged) rose 11.09%, placing it in the 75th percentile within its category and underperforming the 18.24% return on the average fund.
The iShares US Small Cap Index ETF (CAD-Hedged), launched in May 2007, has a Morningstar Medalist Rating of Bronze.
Evolve Innovation Index Fund
Morningstar Rating: 2 stars
Expense Ratio: 0.67%
Morningstar Category: Global Equity
With a 6.88% loss, the C$50 million Evolve Innovation Index Fund was the second-worst-performing ETF on our list for April. The passively managed Evolve Funds ETF underperformed the average 2.65% gain on funds in the global equity category. Over the past 12 months, the Evolve Innovation Index Fund gained 16.93%, placing it in the 29th percentile within its category and underperforming the 20.08% return on the average fund.
The Bronze-rated Evolve Innovation Index Fund was launched in April 2018.
Evolve Future Leadership Fund
Morningstar Rating: 1 star
Expense Ratio: 0.96%
Morningstar Category: Global Equity
The third-worst-performing ETF in April was the C$20 million Evolve Future Leadership Fund, which fell 6.33%. The Evolve Funds ETF, which is actively managed, underperformed the average 2.65% gain on funds in the global equity category. Over the past 12 months, the ETF rose 32.90% to place in the 4th percentile within its category, outperforming the category’s average 1-year return of 20.08%.
The Evolve Future Leadership Fund has a Morningstar Medalist Rating of Neutral. It was launched in September 2020.
Middlefield Real Estate Dividend ETF
Morningstar Rating: 5 stars
Expense Ratio: 2.22%
Morningstar Category: Real Estate Equity
The C$110 million Middlefield Real Estate Dividend ETF was the fourth-worst-performing ETF in April, with a loss of 6.32%. The actively managed Middlefield ETF performed worse than the average 2.28% gain on funds in the real estate equity category. Over the past year, the ETF dropped 2.15% to land in the 44th percentile within its category, underperforming the category’s average one-year return of 4.72%.
The Bronze-rated Middlefield Real Estate Dividend ETF was launched in April 2011.
Vanguard FTSE Canadian Capped REIT Index ETF
Morningstar Rating: 2 stars
Expense Ratio: 0.40%
Morningstar Category: Real Estate Equity
Fifth-worst was the C$260 million Vanguard FTSE Canadian Capped REIT Index ETF, which lost 6.27% in April. The passively managed Vanguard ETF fell short of the average 2.28% return on funds in the real estate equity category. Over the past year, the Vanguard FTSE Canadian Capped REIT Index ETF fell 3.84%, finishing in the 71st percentile within its category. It underperformed the category’s average one-year return of 4.72%.
The Vanguard FTSE Canadian Capped REIT Index ETF has a Morningstar Medalist Rating of Gold. It was launched in November 2012.
iShares S&P/TSX Capped REIT Index ETF
Morningstar Rating: 1 star
Expense Ratio: 0.61%
Morningstar Category: Real Estate Equity
The sixth-worst-performing ETF in April was the C$1.1 billion iShares S&P/TSX Capped REIT Index ETF, which lost 6.24%. The passively managed iShares ETF underperformed the average 2.28% gain on funds in the real estate equity category. Over the past 12 months, the iShares S&P/TSX Capped REIT Index ETF fell 9.64%, placing it in the 100th percentile within its category and underperforming the 4.72% return on the average fund.
The iShares S&P/TSX Capped REIT Index ETF has a Morningstar Medalist Rating of Silver. It was launched in October 2002.
TD Active Global Real Estate Equity ETF
Morningstar Rating: 3 stars
Expense Ratio: 0.73%
Morningstar Category: Real Estate Equity
With a 6.14% loss, the C$71 million TD Active Global Real Estate Equity ETF was the seventh-worst-performing ETF on our list for April. The actively managed TD ETF underperformed the average 2.28% gain on funds in the real estate equity category. Over the past 12 months, the TD Active Global Real Estate Equity ETF gained 1.24%, placing it in the 7th percentile within its category and underperforming the 4.72% return on the average fund.
The TD Active Global Real Estate Equity ETF, launched in November 2019, has a Morningstar Medalist Rating of Neutral.
Hamilton US Mid-Cap Financials ETF
Morningstar Rating: 3 stars
Expense Ratio: 0.91%
Morningstar Category: Financial Services Equity
The eighth-worst-performing ETF in April was the C$24 million Hamilton US Mid-Cap Financials ETF, which fell 6.10%. The Hamilton Capital ETF, which is actively managed, underperformed the average 5.37% gain on funds in the financial services equity category. Over the past 12 months, the ETF rose 28.14% to place in the 8th percentile within its category, outperforming the average one-year return of 21.84%.
The Hamilton US Mid-Cap Financials ETF, launched in June 2020, has a Morningstar Medalist Rating of Neutral.
iShares S&P US Small-Cap Index ETF (CAD-Hedged)
Morningstar Rating: 1 star
Expense Ratio: 0.22%
Morningstar Category: US Small/Mid Cap Equity
The C$21 million iShares S&P US Small-Cap Index ETF (CAD-Hedged) was the ninth-worst-performing ETF in April, with a decline of 5.68%. The passively managed iShares ETF performed worse than the average 3.30% gain on funds in the US small-cap/mid cap equity category. Over the past year, the ETF gained 10.33% to land in the 81st percentile, underperforming the category’s average one-year return of 18.24%.
The iShares S&P US Small-Cap Index ETF (CAD-Hedged) has a Morningstar Medalist Rating of Bronze. It was launched in September 2019.
Global X Global Sustainability Leaders Index ETF
Morningstar Rating: 4 stars
Expense Ratio: 0.54%
Morningstar Category: Global Equity
Tenth-worst was the C$104 million Global X Global Sustainability Leaders Index ETF, which lost 5.61% in April. The actively managed Horizons ETF underperformed the average 2.65% return on funds in the global equity category for the month. Over the past year, the Global X Global Sustainability Leaders Index ETF rose 20.23%, finishing the 12-month period in the 16th percentile within the global equity category. It performed roughly in line with the category’s average one-year return of 20.08%.
The Global X Global Sustainability Leaders Index ETF takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Silver.
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:
Use the ETF Screener tool 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.
Find ideas specific to your needs, or learn more about ETFs, on our ETF Insights page.
Compare funds and ETFs side by side and easily follow their valuations, ratings, and fees.
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.
