Similar to the overall market, lots of ETFs have been on a downtrend in the last year. Two of the largest ETFs, Vanguard S&P 500 ETF (VOO) and the tech-heavy Invesco QQQ Trust (QQQ), are down -1.53% and -9.89% in the last year. If an investor put $10k in VOO a year ago, it would be worth $9.84k today. If an investor made the same $10k investment in QQQ a year ago, it would be worth $9.84k today.
However, many ETFs, especially those involved in the tech sector, have seen much worse returns. Below are four ETFs that are down more than 40% in the last year. All four of these ETFs are heavily weighted towards tech stocks, including many smaller and medium sized companies. This is in contrast to QQQ, which consists of larger tech firms, including some of the most well known brands in the world. Two of these ETFs track an index and the other two are actively managed.
4. Renaissance IPO ETF (IPO), down -42.89%
This Renaissance ETF tracks the Renaissance IPO Index, which consists of companies who have recently gone public. The top three holdings in this ETF are Uber Technologies (UBER), CrowdStrike Holdings (CRWD), and Snowflake (SNOW). $10k invested in this ETF 12 months ago would be worth $5.71k today.
- Net Assets: $198.15 million
- Date founded: October 16, 2013
- Expense ratio: 0.60%
- Yield: 0.00%
- Total holdings: 100
- Net fund flows (past year): $-312.25 million
3. Global X Blockchain ETF (BLOK), down -43.58%
This Amplify ETF is actively managed and aims to invest at least 80% of the fund’s net assets in companies involved in blockchain technology. The top three holdings in this ETF are Silvergate Capital (SI), CME Group (CME), and NVIDIA (NVDA). $10k invested in this ETF 12 months ago would be worth $5.64k today.
- Net Assets: $874.59 million
- Date founded: January 16, 2018
- Expense ratio: 0.71%
- Yield: 20.59% (an annual dividend of $5.75 was distributed on 12/31/21)
- Total holdings: 43
- Net fund flows (past year): $424.87 million
2. Invesco NASDAQ Internet ETF (PNQI), down -44.35%
This Invesco ETF tracks the Nasdaq CTA Internet Index, which consists Internet-related businesses that are listed on the New York Stock Exchange (“NYSE”), NYSE American, Cboe Exchange (“Cboe”) or The Nasdaq Stock Market (“Nasdaq”). The top three holdings in this ETF are Amazon (AMZN), Microsoft (MSFT), and Google (GOOG). $10k invested in this ETF 12 months ago would be worth $5.56k today.
- Net Assets: $568.87 million
- Date founded: June 12, 2008
- Expense ratio: 0.60%
- Yield: 0.00%
- Total holdings: 82
- Net fund flows (past year): -$70.09 million
1. ARK Innovation ETF (ARKK), down -57.59%
This ARK ETF is actively managed and aims to invest in companies working on ‘disruptive innovation’. Cathie Wood’s flagship ETF boomed from March 2020 to February 2021, but has been on a downtrend ever since. The top three holdings in this ETF are Tesla (TSLA), Zoom (ZM), and Roku (ROKU). $10k invested in this ETF 12 months ago would be worth $4.24k today.
- Net Assets: $9.52 billion
- Date founded: October 30, 2014
- Expense ratio: 0.75%
- Yield: 0.00%
- Total holdings: 35
- Net fund flows (past year): -$1.84 billion