Worst Performing ETFs Of 2Q 2022

These funds have fallen most in the first half of 2022.

sumit
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Senior ETF Analyst
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Reviewed by: Sumit Roy
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Edited by: Sumit Roy

The first half of 2022 is shaping up to be the worst for U.S. stocks since 1970. The S&P 500 is currently down around 18.5% on a year-to-date basis, while the Vanguard Information Technology Index Fund ETF (VGT) has fallen by 26.7%. 

In such an abysmal year for stock market returns, the threshold for making this edition of the “Worst Performing ETFs of the Year” is really high. 

This time around we have two lists—one that includes inverse and leveraged exchange-traded funds, and one that doesn’t. To make the all-encompassing list, the cutoff was a loss of 64%; to make the narrower list without leveraged and inverse ETFs, the cutoff was a still-massive 50% loss. 

Both lists are located at the bottom of this article.  

Blockchain ETFs Dominate Worst Performers List  

Taking the unfortunate title of worst-performing ETF of the year so far is the Global X Blockchain ETF (BKCH)

BKCH got hit with a double whammy—collapsing cryptocurrency prices and plunging stock markets. Its basket of blockchain-focused companies—including Coinbase, Riot Blockchain and Galaxy Digital—were absolutely demolished this year. 

The ETF’s nearly 73% year-to-date decline was just ahead of competing crypto-focused ETFs, such as the VanEck Digital Transformation ETF (DAPP), the Viridi Bitcoin Miners ETF (RIGZ) and the Bitwise Crypto Industry Innovators ETF (BITQ)—all down more than 69%. 

Meanwhile, the ProShares Bitcoin Strategy ETF (BITO), which holds bitcoin futures contracts, is down a little over 55%, enough to put it at No. 15 on the worst performers list. 

Cannabis ETFs Plunge  

Crypto ETFs are one of two big groups to dominate the worst performers list; the other is cannabis ETFs.  

The Advisorshares Poseidon Dynamic Cannabis ETF (PSDN), the ETFMG US Alternative Harvest ETF (MJUS) and The Cannabis ETF (THCX) each tumbled more than 50% this year. 

BTIG analyst Camilo Lyon told Bloomberg that the slump in cannabis stocks has to do with a “regulatory recession,” in which cannabis reforms across the country had progressed slower than investors had expected.  

ARK ETFs Among Worst Performers  

While crypto and cannabis make up the majority of the 25 worst-performing ETFs this year, a few notable funds not tied to those categories popped up on the list. 

The one everyone will recognize is the ARK Innovation ETF (ARKK). Cathie Wood’s flagship fund is down 53% this year, enough to make it the 22nd-worst-performing ETF of the year. 

The ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) also make appearances on the list. 

Finally, two of the hottest and arguably frothiest corners of the market in 2020 and 2021—SPACs and meme stocks—are also represented on the list. The De-SPAC ETF (DSPC) and the Roundhill Meme ETF (MEME) are down 63.7% and 51%, respectively. 

For a full list of this year’s worst-performing ETFs, see the tables below: 

 

Worst Performing ETFs Of The Year (ex. leveraged/inverse)

FundTickerYTD Return
Global X Blockchain ETFBKCH -72.71%
VanEck Digital Transformation ETFDAPP -72.34%
Viridi Bitcoin Miners ETFRIGZ -70.08%
Bitwise Crypto Industry Innovators ETFBITQ -69.35%
First Trust SkyBridge Crypto Industry and Digital Economy ETFCRPT -68.57%
Invesco Alerian Galaxy Crypto Economy ETFSATO -66.31%
Advisorshares Poseidon Dynamic Cannabis ETFPSDN -64.64%
Global X Blockchain & Bitcoin Strategy ETFBITS -64.03%
The De-SPAC ETFDSPC -63.70%
Defiance Digital Revolution ETFNFTZ -63.02%
Vaneck Bitcoin Strategy ETFXBTF -57.57%
ARK Fintech Innovation ETFARKF -57.16%
AdvisorShares Pure US Cannabis ETFMSOS -55.61%
ProShares Bitcoin Strategy ETFBITO -55.47%
AdvisorShares Pure Cannabis ETFYOLO -55.16%
Valkyrie Bitcoin Strategy ETFBTF -55.11%
Defiance Next Gen Altered Experience ETFPSY -54.21%
ETFMG US Alternative Harvest ETFMJUS -53.89%
ARK Next Generation Internet ETFARKW -53.52%
Advisorshares Psychedelics ETFPSIL -52.80%
ARK Innovation ETFARKK -52.64%
The Cannabis ETFTHCX -52.46%
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETFBLKC -51.68%
Roundhill Meme ETFMEME -50.97%

Data measures total returns for the year-to-date period through June 28, 2022. 

 

Worst Performing ETFs Of The Year (all-compassing)

FundTickerYTD Return
ProShares UltraShort Bloomberg Natural GasKOLD -86.75%
Direxion Daily Dow Jones Internet Bull 3x Shares ETFWEBL -84.30%
MicroSectors FANG & Innovation 3X Leveraged ETNBULZ -83.01%
Direxion Daily S&P Biotech Bull 3X SharesLABU -79.14%
Direxion Daily Homebuilders & Supplies Bull 3x SharesNAIL -78.66%
MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETNsNRGD -77.89%
Direxion Shares ETF Trust-Direxion Daily Select Large Caps & FANGs Bull 2X ShareFNGG -76.97%
Direxion Daily Semiconductors Bull 3x SharesSOXL -76.73%
MicroSectors Oil & Gas Exploration & Production -3X Inverse Leveraged ETNOILD -76.32%
MicroSectors FANG+ Index 3X Leveraged ETNs due January 8 2038FNGU -75.41%
Direxion Daily Retail Bull 3X SharesRETL -73.01%
Global X Blockchain ETFBKCH -72.71%
VanEck Digital Transformation ETFDAPP -72.34%
Direxion Daily Consumer Discretionary Bull 3X SharesWANT -71.11%
ETFMG 2X Daily Alternative Harvest ETFMJXL -70.15%
Viridi Bitcoin Miners ETFRIGZ -70.08%
Bitwise Crypto Industry Innovators ETFBITQ -69.35%
First Trust SkyBridge Crypto Industry and Digital Economy ETFCRPT -68.57%
Direxion Daily Robotics Artificial Intelligence & Automation Index Bull 2X ShareUBOT -67.41%
ProShares UltraPro QQQTQQQ -67.15%
Invesco Alerian Galaxy Crypto Economy ETFSATO -66.31%
ProShares UltraShort Bloomberg Crude OilSCO -65.85%
Advisorshares Poseidon Dynamic Cannabis ETFPSDN -64.64%
Global X Blockchain & Bitcoin Strategy ETFBITS -64.03%

Data measures total returns for the year-to-date period through June 28, 2022. 

 

Follow Sumit on Twitter @sumitroy2

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.