Exchange-traded funds (ETFs) are low-cost instruments for investors to track indexes or leverage experienced manager choices. The worst-performing ETFs in 2025 were WisdomTree Cloud Computing (WCLD) and iShares Japan Govt Bond (JGB1X). These funds underperformed their categories, with data sourced from Morningstar Direct. When evaluating ETFs, long-term returns are crucial, but short-term returns offer insight into strategy biases. To find the worst-performing ETFs, Morningstar screened equity, allocation, and fixed-income categories in the UK with over $25 million in total assets, excluding trading funds. The 10 worst-performing ETFs in 2025 include WisdomTree Cloud Computing, iShares Japan Govt Bond, Global X Cybersecurity, Rize Sustainable Future of Food, HSBC MSCI Indonesia, iShares Global Timber & Forestry, Xtrackers MSCI Indonesia Swap, Amundi MSCI Indonesia, WisdomTree Cybersecurity, and Invesco KBW NASDAQ Fintech. These funds experienced losses ranging from 7.36% to 13.04% in 2025.

Read more at Morningstar: The Worst ETFs of 2025 for UK Investors