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.