The Worst-Performing ETFs for UK Investors

Updated: SPDR S&P US Energy Select Sector and iShares S&P 500 Energy Sector were among the worst-performing ETFs in Q2 2025.

Bella Albrecht 7 Jul 2025Share

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 the second quarter of 2025, the worst performers included SPDR S&P US Energy Select Sector UCITS ETF SXLE and iShares S&P 500 Energy Sector UCITS ETF USD Acc IUES. 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 quarter’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 (£18.3 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, five were from the equity healthcare category, where funds fell 4.44% in the second quarter.

The 10 Worst-Performing ETFs for Q2 2025

1. SPDR S&P US Energy Select Sector UCITS ETF SXLE
2. iShares V PLC – iShares S&P 500 Energy Sector UCITS ETF USD (Acc) IUES
3. Invesco Energy S&P US Select Sector UCITS ETF XLES
4. Xtrackers MSCI USA Energy UCITS ETF XUEN
5. Invesco Health Care S&P US Select Sector UCITS ETF XLVS
6. iShares V PLC – iShares S&P 500 Health Care Sector UCITS ETF USD (Acc) IUHC
7. SPDR S&P US Health Care Select Sector UCITS ETF SXLV
8. Xtrackers MSCI USA Health Care UCITS ETF XUHC
9. Invesco Markets II PLC – Invesco S&P World Health Care ESG UCITS ETF WHCE
10. SPDR MSCI World Energy UCITS ETF WNRG

SPDR S&P US Energy Select Sector UCITS ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.15%
• Morningstar Category: Equity Energy

The worst-performing ETF in the second quarter was the £490 million SPDR S&P US Energy Select Sector UCITS ETF, which lost 14.03%. The passively managed State Street ETF fell further than the average 3.87% loss on funds in the equity energy category in the second quarter. Over the past 12 months, SPDR S&P US Energy Select Sector fell 11.87%, placing it in the 80th percentile within its category and underperforming the 0.19% return on the average fund.

The SPDR S&P US Energy Select Sector UCITS ETF, launched in July 2015, has a Morningstar Medalist Rating of Bronze.

iShares V PLC – iShares S&P 500 Energy Sector UCITS ETF USD (Acc)

• Morningstar Rating: 3 stars
• Expense Ratio: 0.15%
• Morningstar Category: Equity Energy

With a 14.02% loss, the £513 million iShares S&P 500 Energy Sector UCITS ETF USD (Acc) was the second-worst performing ETF on our list for the second quarter. The passively managed iShares ETF fell further than the average 3.87% loss on funds in the equity energy category. Over the past year, iShares S&P 500 Energy Sector lost 11.97%, placing it in the 83rd percentile within its category and underperforming the 0.19% return on the average fund.

The Bronze-rated iShares S&P 500 Energy Sector UCITS ETF USD (Acc) was launched in November 2015.

Invesco Energy S&P US Select Sector UCITS ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.14%
• Morningstar Category: Equity Energy

The third-worst performing ETF in the second quarter was the £53 million Invesco Energy S&P US Select Sector UCITS ETF, which fell 14.01%. The Invesco ETF, which is passively managed, fell further than the average 3.87% loss on funds in the equity energy category. Over the past 12 months, the ETF fell 12.04% to place in the 85th percentile within its category, underperforming the category’s average return of 0.19%.

The Invesco Energy S&P US Select Sector UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in December 2009.

Xtrackers MSCI USA Energy UCITS ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.12%
• Morningstar Category: Equity Energy

The £54 million Xtrackers MSCI USA Energy UCITS ETF was the fourth-worst performing ETF in the second quarter, with a loss of 13.67%. The passively managed Xtrackers ETF performed worse than the average 3.87% loss on funds in the equity energy category. Over the past year, the ETF dropped 10.40% to land in the 77th percentile within its category, underperforming the category’s average one-year return of 0.19%.

The Bronze-rated Xtrackers MSCI USA Energy UCITS ETF was launched in September 2017.

Invesco Health Care S&P US Select Sector UCITS ETF

• Morningstar Rating: 5 stars
• Expense Ratio: 0.14%
• Morningstar Category: Equity Healthcare

Fifth-worst was the £251 million Invesco Health Care S&P US Select Sector UCITS ETF, which lost 12.66% in the second quarter. The passively managed Invesco ETF fell further than the average 4.44% decline on funds in the equity healthcare category. Over the past 12 months, Invesco Health Care S&P US Select Sector fell 13.54%, finishing in the 56th percentile within its category. It dropped further than the category’s average loss of 9.50%.

The Invesco Health Care S&P US Select Sector UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in December 2009.

iShares V PLC – iShares S&P 500 Health Care Sector UCITS ETF USD (Acc)

• Morningstar Rating: 4 stars
• Expense Ratio: 0.15%
• Morningstar Category: Equity Healthcare

The sixth-worst performing ETF in the second quarter was the £1.7 billion iShares S&P 500 Health Care Sector UCITS ETF USD (Acc), which lost 12.66%. The passively managed iShares ETF fell further than the average 4.44% loss on funds in the equity healthcare category. Over the past year, iShares S&P 500 Health Care Sector fell 13.54%, placing it in the 56th percentile within its category and falling further than the 9.50% loss on the average fund.

The iShares S&P 500 Health Care Sector UCITS ETF USD (Acc) has a Morningstar Medalist Rating of Bronze. It was launched in November 2015.

SPDR S&P US Health Care Select Sector UCITS ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.15%
• Morningstar Category: Equity Healthcare

With a 12.64% loss, the £242 million SPDR S&P US Health Care Select Sector UCITS ETF was the seventh-worst performing ETF on our list for the second quarter. The passively managed State Street ETF fell further than the average 4.44% loss on funds in the equity healthcare category. Over the past 12 months, the SPDR S&P US Health Care Select Sector UCITS ETF lost 13.52%, placing it in the 55th percentile within its category and putting it down further than the 9.50% loss on the average fund.

The SPDR S&P US Health Care Select Sector UCITS ETF, launched in July 2015, has a Morningstar Medalist Rating of Bronze.

Xtrackers MSCI USA Health Care UCITS ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.12%
• Morningstar Category: Equity Healthcare

The eighth-worst performing ETF in the second quarter was the £474 million Xtrackers MSCI USA Health Care UCITS ETF, which fell 12.07%. The Xtrackers ETF, which is passively managed, fell further than the average 4.44% loss on funds in the equity healthcare category. Over the past year, the ETF fell 13.04% to place in the 51st percentile within its category, dropping further than the average one-year loss of 9.50%.

The Xtrackers MSCI USA Health Care UCITS ETF, launched in September 2017, has a Morningstar Medalist Rating of Bronze.

Invesco Markets II PLC – Invesco S&P World Health Care ESG UCITS ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.18%
• Morningstar Category: Equity Healthcare

The £76 million Invesco S&P World Health Care ESG UCITS ETF was the ninth-worst performing ETF in the second quarter, with a decline of 11.58%. The passively managed Invesco ETF performed worse than the average 4.44% loss on funds in the equity healthcare category. Over the past 12 months, the ETF dropped 15.19% to land in the 73rd percentile, falling further than the category’s average loss of 9.50%.

The Invesco S&P World Health Care ESG UCITS ETF has a Morningstar Medalist Rating of Bronze. It was launched in April 2023.

SPDR MSCI World Energy UCITS ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.30%
• Morningstar Category: Equity Energy

Tenth-worst was the £258 million SPDR MSCI World Energy UCITS ETF, which lost 10.48% in the second quarter. The passively managed State Street ETF fell further than the average 3.87% loss on funds in the equity energy category for the quarter. Over the past year, SPDR MSCI World Energy fell 8.34%, finishing the 12-month period in the 66th percentile within the equity energy category. It underperformed the category’s average one-year return of 0.19%.

The Gold-rated SPDR MSCI World Energy UCITS ETF was launched in April 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.

5 Top-Rated ETFs for Income

Income ETFs are designed to offer regular, low-volatility dividends, regardless of market conditions

Valerio Baselli 20 May 2024

During this special week of content on income, we’re highlighting five high-yield exchange-traded funds (ETFs), with a Medalist Rating of Silver or Gold

For investors looking for funds that generate a regular income stream funds with exposure to the companies with the highest dividend yields are an attractive option.

These are products designed to offer regular, low-volatility dividends, regardless of market conditions.

What constitutes a good high-dividend strategy for passive funds? Today, income investors are increasingly attracted to ETFs because they’re easy to buy, transparent, and cheap.

Iinvestors should also looking for funds with stable payouts and constant dividend growth anyway, rather than the highest yield.

For dividend stock investors, there’s always the possibility of falling into a “dividend trap”, which is when a high yield masks problems with high debt and profitability and a dividend is cut or scrapped.

Dividend ETFs try to avoid this by balancing their yield from current income with the portfolio’s long-term capital growth. However, strategies may vary from fund to fund, and it’s worth understanding how often the portfolio gets rebalanced and what index the ETF is replicating.

Five Highly Rated Dividend ETFs

Below we list five income ETFs, with a Medalist Rating of Silver and Gold, each for a different geographic region. We’ve highlighted commentary by our team of analysts on passive strategies below:

iShares MSCI Europe Quality Dividend ESG UCITS ETF EUR (QDVX)

• Morningstar Medalist Rating: Gold

• Morningstar Category: Europe Equity Income

• Ongoing Charge: 0.28%

• 12 Month Yield: 3.36%

This strategy earns a Morningstar Medalist Rating of Gold. The analysis of the portfolio shows it has maintained an overweight in liquidity exposure and an underweight in volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. Low volatility exposure is rooted in stocks that have a lower standard deviation of returns. This particular ETF is overweight technology by 4.9 percentage points in terms of assets compared with the category average. The portfolio is positioned across 81 holdings and is relatively top-heavy. Of the strategy’s assets, 30.5% are concentrated within the top 10 holdings, compared to the category’s 19.0% average. Fees (0.28%) are among the lowest in the category.

SPDR® S&P US Dividend Aristocrats UCITS ETF (UDVD)

• Morningstar Medalist Rating: Silver

• Morningstar Category: US Equity Income

• Ongoing Charge: 0.35%

• 12 Month Yield: 2.14%

This US-focused strategy shows a greater presence of mid- and small-cap stocks than its peers within the Morningstar category, and the portfolio has maintained an overweight exposure to liquidity and quality stocks. In recent years, this fund has consistently moved towards higher volume stocks than its Morningstar peers. This gives managers greater flexibility during bear markets to sell without adversely affecting prices. In recent months, the strategy has been more exposed to liquidity factors than its direct competitors. The strategy has also had a defensive bias.

Performance-wise, the ETF has been sub-par over the short term but strong over the long term. Over the past five years, the fund slightly underperformed the category index (a benchmark chosen by Morningstar for the peer group) 0.36 percentage points, but outperformed its average peer by 1.4 percentage points. More importantly, on a 10-year basis, this share class led the index by an annualised 0.75%. It has also been leading the index with a higher risk-adjusted return over the trailing 10-year period. Often, higher returns are associated with more risk. However, this strategy stayed in line with the benchmark’s standard deviation. As well as its low cost (0.35%), these factors earn it a Medalist Rating of Silver.

L&G Quality Equity Dividends ESG Exclusions UK UCITS ETF (LDUK)

• Morningstar Medalist Rating: Silver

• Morningstar Category: UK Equity Income

• Ongoing Charge: 0.24%

• 12 Month Yield: 5.00%

The analysis of this strategy’s portfolio shows it has maintained a significant overweight position in quality exposure and yield exposure compared with category peers. It invests in stocks with low financial leverage and strong returns on equity, giving it a high exposure to quality. These holdings also tend to be high dividend-paying or buyback stocks. The portfolio – which is positioned across 37 holdings and is relatively top-heavy – is overweight in financial services and basic materials relative to the category average by 29.9 and 3.6 percentage points, respectively. This ETF maintains a sizeable cost advantage over competitors, priced within the cheapest fee quintile among peers (at 0.24%), and earns a Morningstar Medalist Rating of Silver.

Fidelity Global Quality Income ETF (FGQI)

• Morningstar Medalist Rating: Gold

• Morningstar Category: Global Equity Income

• Ongoing Charge: 0.40%

• 12 Month Yield: 2.68%

This strategy earns a Morningstar Medalist Rating of Gold. Over the past three-year period, it beat the category index by an annualised 0.65 percentage points and outperformed the category average by 3.1 percentage points. And more importantly, when looking across a longer horizon, the strategy came out ahead. On a five-year basis, it led the index by an annualised 3.8 percentage points.

The fund’s risk-adjusted performance only makes its profile look better. The share class led the index over the trailing five-year period. These strong risk-adjusted results have not resulted in a bumpier ride for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation.

The portfolio is overweight in technology and consumer cyclical relative to the category average by 4.4% and 2.7%, respectively. The sectors with low exposure compared to category peers are consumer defensive and financial services. The ongoing charge is 0.40%.

Fidelity Emerging Markets Quality Income UCITS ETF (FEME)

• Morningstar Medalist Rating: Gold

• Morningstar Category: Global Emerging Markets Equity

• Ongoing Charge: 0.35%

• 12 Month Yield: 3.62%

This fund maintains a sizeable cost advantage over competitors, priced within the second-cheapest fee quintile among peers. The portfolio has allocations in its top two sectors – industrials and basic materials – that are similar to the category. The sectors with low exposure compared to category peers are consumer defensive and communication services; however, the allocations are similar to the category. The portfolio is composed of 179 holdings and is diversified among those holdings. In its most recent portfolio, 20.2% of the portfolio’s assets were concentrated in the top 10 fund holdings, compared to the category average’s 35.5%.

The fund’s long-term track record is largely no longer applicable, as it is not necessarily representative of the current strategy. The new team took the reins in March 2022 and, looking at its performance so far, it has posted admirable results. For the most recent two-year period, the strategy garnered a 1.1% return through month-end, over its peers’ average 1.7% loss and the category index’s 1.0% loss. Taking risk into account, over the past year, the strategy had a similar standard deviation, a measure of variation of returns, to the benchmark. Morningstar analysts assign it a Medalist Rating of Gold.

The Slow and Steady passive portfolio update: Q2 2025

by The Accumulator on July 8, 2025

This time three months ago, the Slow & Steady passive portfolio was suffering under the strain of Trump’s one-man assault on the global trade system. But we’ve made up all our losses since then.

Indeed we’re now ahead, albeit by a none-too-convincing 1.6% year-to-date.

Our four equity funds have put on double-digit gains in the space of a quarter. Global property is dragging its heels though – and good old gilts continue to make me rue the day.

Here are the numbers. See the annualised returns column for the all-important long-term gains:

The Slow & Steady is Monevator’s model passive investing portfolio. It was set up at the start of 2011 with £3,000. An extra £1,310 is invested every quarter into a diversified set of index funds, tilted towards equities. You can read the origin story and find all the previous passive portfolio posts in the Monevator vaults. Subtract about 3% from the portfolio’s annualised performance figure to estimate the real return after inflation.

Stick or twist

I’m more convinced than ever that nobody (but nobody) can predict what’s around the corner.

Is the US market being slowly poisoned by political risk? Or is it the last bastion of economic dynamism in the Western world?

Flip a coin? Best of three.

I’m in no hurry to make a call. The political and commercial climate seems so changeable, I’d sooner make a claim for whiplash.

It’s funny how the more febrile the world becomes, the more obvious it should be – but somehow isn’t – that a passive strategy makes sense.

The thing is: we’re primed to look for new answers to new problems. Ideas, strategies, and products that are supposedly tailor-made to meet the moment.

It’s less the triumph of hope over experience than the triumph of marketing over rationality.

Perhaps there’s an analogy to be drawn between attitudes to passive investing and the apparent loss of faith in our democratic institutions?

Both realms offer the same old solutions. Products that can only achieve so much and suffer from a perceived lack of ambition in the age of moonshots. Results that are far from guaranteed and sometimes you must go backwards before you go forwards. Patience required.

The alternative? Roll the dice on a buzzy new venture fronted by a man with a tan promising the Earth.

Because that always works, right?

The Directors of TwentyFour Select Monthly Income Fund Limited (“SMIF”), the listed, closed-ended investment company that invests in a diversified portfolio of credit securities, have declared that a dividend of 0.5 pence per share will be paid, in line with the Prospectus, representing the regular monthly targeted dividend for the financial period ended 30 June 2025 and an additional dividend of 0.25 pence per share will be paid as follows:

Ex-Dividend Date 17 July 2025

Record Date 18 July 2025

Payment Date 1 August 2025

Dividend per Share 0.75 pence (Sterling)

How Uncle Sam + ChatGPT = 9% and 12% Dividends
Brett Owens, Chief Investment Strategist
Updated: July 9, 2025

A nifty dividend duo—with yields of 9% and 12%—is ready for takeoff. Thanks to Uncle Sam’s spending bender coinciding with the rise of the machines.

Big tech stocks are about to remind Wall Street why it fell in love with these shares in the first place. Think you’ve seen a tech bubble before? Just wait until tech firms report earnings later this month!

These companies are growing sales and profits by deploying robots instead of hiring humans. Their AI-driven tools are faster, more scalable, and much cheaper than carbon-based labor. Cost savings are dropping straight to tech bottom lines.

Expect proof of trend as the Nasdaq’s increasingly machine-driven companies report banner earnings in the coming weeks.

Meanwhile, Washington’s $3+ trillion fiscal “open bar” is officially flowing. Policymakers saw a negative GDP print in Q1 and have rapidly revved up the stimulus spigots to avoid a technical recession. Nothing creates market excitement like stimulus cocktails ahead of midterms.

As we approach election season, the Fed is under pressure. Will Fed Chair Jay Powell last his final 10 months? I wouldn’t bet on Jay—not when Treasury Secretary Scott Bessent stands ready to step in and potentially lower the Fed Funds Rate by 300 basis points almost overnight. Talk about bullish fuel!

This backdrop makes us contrarians bullish on stocks—with a twist. We could buy and hope for higher prices, but why? Instead, we can engineer dividend yields of 9% and 12% simply by “selling volatility.” To do this we consider covered call funds, which manufacture sweet synthetic dividends with upside price potential to boot.

Take Christopher Dyer of Eaton-Vance Tax-Managed Global Diversity Equity Fund (EXG). Chris owns significant stakes in Alphabet (GOOG), owner of Waymo, the autonomous “robot” car company. My kids couldn’t stop talking about it after our recent San Francisco trip.

Alphabet itself is becoming “autonomous.” Human hiring has halted. Yet despite flat headcount in the last year, revenues still grew by double digits—14%!

Surviving highly-paid “Googlers” are understandably anxious. They developed Gemini, Alphabet’s AI tool, now being deployed enterprise-wide to automate countless tasks. Yes, they created their own monster.

Chris’s next big holding for EXG is Amazon (AMZN). CEO Andy Jassy openly acknowledges that Amazon’s workforce will shrink over the next few years. Today may well be “peak headcount!”

Microsoft (MSFT), Chris’s largest holding, laid off 6,000 employees in May and another 9,000 just last week. Yet Microsoft isn’t downsizing. It’s upsizing efficiency by rolling out its AI-driven sales and marketing teams, creating “driverless” departments that are equally effective and far cheaper.

Tic tac toe, three AI-driven cash cows in a row. Chris is primed to enjoy an impressive earnings season.

Remarkably, EXG still trades at a 6% discount to its net asset value (NAV). Meaning, we can grab MSFT, GOOG, and AMZN shares for just 94 cents on the dollar, right ahead of strong earnings.

In the meantime, Chris boosts income by selling (writing) covered calls on broad market indexes to generate extra income. Hence EXG’s nifty 9% yield.

Global X S&P 500 Covered Call ETF (XYLD), managed by Nam To and Wayne Xie, follows a similar strategy and yields an attractive 12%. XYLD holds a substantial 40% tech allocation, capturing this automation-driven profitability boom. However, unlike closed-end fund EXG, XYLD trades at fair value—so no additional discount benefit here.

The broader automation trend clearly impacts employment numbers. Last week’s headline 147,000 job gain appeared solid. But removing 73,000 new government jobs (aside: weren’t they supposed to be cutting?) leaves only a gain of 74,000 private-sector positions, significantly below the expected 105,000.

Payroll processing firm ADP’s numbers last week were even harsher, a 33,000 private-sector job loss signaling AI’s impact already.

The machines are here for the jobs. But we, my fellow contrarians, are here for the payouts—specifically the nifty 9% and terrific 12% yields I’m calling out.

It’s big and already starting. Corporate automation plus a $3+ trillion spending bender from Uncle Sam is a powerful recipe for higher stock prices and bigger dividends.

Let’s ignore the “tariff worry” headlines. We are following the money, and it is dropping straight into the tech bros’ coffers. Let’s scrape some serious payouts and profits from this soon-to-be uncovered megatrend.

2 UK shares and funds to target a sizzling summer return!
With investors buying gold again, and central banks still building their bullion reserves, I think these UK shares and funds could fly.

Posted by Royston Wild
Published 9 July

AUCP
SRB

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

I think these UK shares and exchange-traded funds (ETFs) are worth investigating as they could deliver giant returns as gold demand rebounds. Here’s why.

Bouncing back
Gold’s rise to record peaks in 2025 was driven by fears over US trade policy. At $3,500 per ounce, the precious metal surged as markets worried about crushing tariffs and their impact on global growth and inflation.

The threat hasn’t gone away, but its impact on gold prices is greatly diminished. As we’ve seen in recent hours, markets seem accustomed to tough words on tariffs from President Trump before the White House sounds the retreat.

Does this mean gold’s bull run is over ? Not in my book, as there are plenty of other factors that could drive the safe haven to new peaks. These include falling interest rate cuts, a weakening US dollar, and rising geopolitical tensions in the Middle East.

A fine fund
Modern investors have a multitude of options if they want to capitalise on a rising gold price. The first option is to purchase physical gold like bars or coins. The advantage is that investors have 100% control over the asset. However, buying and selling actual metal can be more complicated than other options, and can attract storage costs.

Another possibility is to buy a price-tracking ETF. The problem here however, is that — as with owning physical bullion — individuals don’t receive an income. They only benefit from a rise in the value of the shiny commodity.

To get around this, individuals can purchase an ETF that holds a basket of gold stocks. This is a path I’ve chosen with the L&G Gold Mining (LSE:AUCP) fund, which owns shares in 38 different bullion producers.

Some of the companies it holds (like AngloGold Ashanti, Kinross Gold and Newmont) pay a regular dividend to their investors. This is then reinvested back in the fund for further growth. Another advantage is that miners’ profits can rise faster than the gold price due to the leveraged effect.

The downside is that ETFs like this expose investors to the unpredictable. Though with holdings in a spectrum of different companies, the risk associated with this is reduced (if not totally eliminated).

Another golden opportunity
The final option investors have to play the gold market is to directly buy shares themselves. One that’s caught my eye is Serabi Gold (LSE:SRB).

Buying individual mining shares carries even greater risk due to a lack of diversification. But I think this could be baked into the cheapness of Serabi shares today. At 172.5p per share, the African miner trades on a forward price-to-earnings (P/E) ratio of 3.3 times. This reflects forecasts that annual earnings will rise 87% in 2025.

On top of this, Serabi’s forward dividend yield is a large 5.5%.

I think both this gold stock and the earlier gold ETF are worth consideration right now. In the case of Serabi, now could be a great time to take a look given its impressive recent operational performance.

Gold production rose 11% between January and March, to 10,013 ounces. And all-in sustaining costs (AISCs) dropped 12% to $1,636 per ounce, well below the current gold price.

34% cheaper this year, is this FTSE 100 share a classic turnaround story?

This FTSE 100 share has performed horribly so far in 2025. Our writer sees substantial risks — but is excited about the opportunities too!

Posted by Christopher Ruane

Published 19 June

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.

It has been an impressive year for some shares in the flagship FTSE 100 index of leading companies. Indeed, the Footsie has hit new all-time highs this year, albeit with a fair bit of market volatility thrown in along the way.

But not all FTSE 100 shares have done well. One, for example, has lost around a third of its value so far this year.

There are potentially existential changes taking place in its industry that could see things get much worse even from here. On the other hand, this might turn out to be one of those turnaround situations that looks obviously like a bargain buying opportunity when seen in hindsight a few years later.

Strong position but suffering from industry uncertainty

The company in question is advertising group WPP (LSE: WPP). The holding company owns a number of leading global ad agencies, such as Ogilvy and Grey.

In general, that has been a license to print money. Performance has moved around over time, but last year the company reported £542m of net profit on revenue of £14.7bn. The company’s profits help to support a juicy dividend. The current yield of 7.2% is over twice the FTSE 100 average.

So why the share price fall? In short: artificial intelligence (AI). Investors are panicking that large amounts of the sorts of ad buying and placement currently done by agencies could be done by AI instead.

That risks cutting agency middlemen out of the transaction, leading to big falls in both revenues and profits. Ad creation could also be done by AI. Much of it already is. That is a further risk to WPP.

I think there’s a lot to like

The challenges are serious. The company announced this month that the chief executive plans to step down.

But often risk and opportunity are two sides of the same coin. I do see AI as a risk to a lot of WPP’s traditional revenue streams. But it can also be a powerful cost-cutting tool for the company to apply in its own business. From its partnership with and investment in generative AI developer Stabiity AI to integrating new AI tools into its internal platform WPP Open, the ad group has been proactively seeking to use AI to help its own business.

I also think that, in a sea of inexperienced AI start-ups that do not understand the ad market, WPP’s long, deep, global experience is a real asset that can help it stand apart. Advertising demand can ebb and flow, but it will remain substantial over the long term.

I see that as an enormous asset for WPP. It remains proven, has a large pool of creative talents and has navigated seismic shifts in the ad market before, such as a widespread move from television to digital ads.

My hope is that WPP can do the same again and ultimately turn AI from a possible risk to a driver for ongoing growth.

In my experience, turning around a business that remains solidly profitable is different to one that is slipping ever further into the red. I have bought WPP shares for my portfolio and plan to hang on to them.

Price 19 June 545p

Current price 439p

That’s why the Snowball will only ever own Investment Trusts and ETF’s

Dr James Fox explains how investors can open a Stocks and Shares ISA and aim for long-term wealth generation. Getting started can be the hardest part.

Posted by

Dr. James Fox
Published 9 July

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.
Not knowing how to start is arguably one of the most common reasons Britons don’t have Stocks and Shares ISAs. It can be daunting, with a range of brokerages offering ISAs with varying trading fees and reported benefits.

And then there’s that first investment. It can be incredibly challenging to know where to put one’s hard-earned cash. Investors who elect to invest in individual companies first may experience more volatility than they were hoping for.

However, starting with a diversified approach — investing in tracker funds or even investment trusts — can mitigate some of that volatility. In turn, this can create a more reliable base from which investors can start to look at individual stocks.

One of the easiest ways to get disheartened and stop investing is to make mistakes and lose money. Some of my first investments, many years ago, were simply companies I liked. These were not the undervalued stocks that have since taken my portfolio forwards.

But once a new investor understands that making poor decisions can result in losing money, and takes steps to preserve capital by making informed decisions, the path to wealth generation becomes simpler.

What are tracker funds?
Tracker funds, also known as index funds, are investment vehicles designed to mirror the performance of a specific market index, such as the FTSE 100 or S&P 500. They achieve this by holding a portfolio of securities (stocks, bonds, etc.) that closely matches the composition of the chosen index. This allows investors to gain exposure to a broad range of companies at a relatively low cost.

Tracker funds are passively managed, meaning they do not attempt to outperform the market. Instead they aim to replicate its returns. This typically keeps fees low. Among tracker funds, global trackers stand out because they invest across multiple countries and sectors. This makes them some of the most diversified investments available.

Or something a little more exciting
Scottish Mortgage Investment Trust (LSE:SMT) is a well-known, actively managed fund that focuses on finding and supporting some of the world’s most innovative and high-growth companies, both public and private.

Managed by Baillie Gifford, the trust invests in sectors like technology, healthcare, and transportation, with holdings including giants such as Nvidia, Amazon, and SpaceX.

Over the past decade, Scottish Mortgage has significantly outperformed the FTSE All-World benchmark, delivering a net asset value total return of 343% compared to the benchmark’s 186%.

Unlike tracker funds, Scottish Mortgage’s concentrated portfolio and focus on disruptive businesses can make it more exciting for investors. However, this approach also brings higher risk and volatility, and the trust’s share price can trade at a premium or discount to its underlying assets.

I use this investment trusts as a core part of my SIPP, my daughter’s SIPP, and it’s in our ISAs. I certainly believe it’s worth considering.

18 REITs estimated to raise dividends in Q3, RLJ Lodging Trust expected to lead

By: Mary Christine Joy, SA NewsJul. 08, 2025

The Real Estate Select Sector SPDR® Fund ETF (XLRE), RWR, ICF, FRI, SCHH, MORT, SRET, KBWY, USRT, REIT, NURE, BBRE, SPRE, RDOG, HAUSDLR, ALEX, CTO, ADC, O, WELL, FRT, BRT, NNN, EGP, TRNO, RLJ, CHCT, IIPR, VICI, NTST, CBL, STRW
A total of 18 publicly traded REITs are expected to hike their dividend payouts in the third quarter, according to a report by S&P Global Market Intelligence.

The forecast takes into account 137 public real estate investment trusts. The remaining are projected to maintain their payouts.

RLJ Lodging Trust (RLJ) is estimated to increase its distribution by about 13.3% to $0.17 per share in August, according to analysts.

The hotel REIT had declared a quarterly dividend of $0.15 per share in June. The estimated dividend hike reportedly makes this the highest potential increase in the third quarter.

The second-highest potential dividend raise could be from Alexander & Baldwin (ALEX), according to Market Intelligence.

The diversified REIT is estimated to hike its quarterly payout by 11.1% to $0.25 per share from $0.225. The announcement could come in late July, according to the report.

Welltower (WELL) follows, with a potential quarterly distribution hike of 9.0% to $0.73 per share from $0.67.

Other notable dividend increases are expected to come from:

EastGroup Properties (EGP) (8.6% quarterly hike to $1.52 per share from $1.40)
Terreno Realty (TRNO) (8.2% quarterly hike to $0.53 per share from $0.49)
BRT Apartments (BRT) (8.0% quarterly hike to $0.27 per share from $0.25)
Strawberry Fields REIT (STRW) (7.1% quarterly hike to $0.15 per share from $0.14)
CBL & Associates Properties (CBL) (6.2% quarterly hike to $0.425 per share from $0.40)
CTO Realty Growth (CTO) (5.3% quarterly hike to $0.40 per share from $0.38)
Digital Realty Trust (DLR) (4.1% quarterly hike to $1.27 per share from $1.22)
VICI Properties (VICI) (4.0% quarterly hike to $0.45 per share from $0.4325)
Innovative Industrial Properties (IIPR) (2.6% quarterly hike to $1.95 per share from $1.90)
NNN REIT (NNN) (2.6% quarterly hike to $0.595 per share from $0.58)
NETSTREIT (NTST) (2.4% quarterly hike to $0.215 per share from $0.21)
Federal Realty Investment Trust (FRT) (0.9% quarterly hike to $1.11 per share from $1.10)
Community Healthcare Trust (CHCT) (0.5% quarterly hike to $0.4725 from $0.47)
Agree Realty (ADC) (0.4% monthly hike to $0.257 per share from $0.256)
Realty Income (O) (0.2% monthly hike to $0.2695 per share from $0.269)

Global X SuperDividend REIT ETF declares monthly distribution of $0.1440

Jul. 08, 2025 Global X SuperDividend® REIT ETF (SRET)By: Deepa Sarvaiya

• Global X SuperDividend REIT ETF (NASDAQ:SRET)
• 30-Day SEC Yield of 8.11% as of July 7.
• Payable Jul 11; for shareholders of record Jul 03; ex-div Jul 03.