ETFs
The best performing ETFs of the quarter
Exchange-traded funds, or ETFs, are often low-cost vehicles that allow investors to track popular indexes or take advantage of the choices of experienced managers to try to beat the market. The best ones serve as the foundation of a portfolio, and unlike open-end mutual funds, all ETFs trade throughout the day on a stock exchange.
In the second quarter of 2024, the best performing ETFs included Amundi MSCI Turkey Turkish Equity Funds (TUR) and iShares MSCI Türkiye (I don’t know). The data for this article comes from Morningstar Direct.
Selection of the best performing ETFs
To identify the best performing ETFs of the quarter, we selected those in Morningstar’s equity, allocation or fixed income categories that are available in the UK. We excluded exchange traded notes (ETNs) and ETFs with total assets of less than $25 million (£19.7 million). 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. All returns are shown in GBP.
In our list, two funds belong to the Turkish stocks category, where the average name increased by 25.98% in the second quarter.
Top 10 ETFs for Q2 2024
1. Amundi MSCI Türkiye UCITS ETF (TUR)
2. ETF UCITS iShares MSCI Türkiye (I don’t know)
3. Amundi MSCI Semiconductors ESG Screened UCITS ETF (CHIP)
4. Invesco Technology S&P US Select Sector UCITS ETF (XLKS)
5. HSBC MSCI Taiwan UCITS Capped ETF (HTWD)
6. ETF UCITS Global X Silver Miners (PLEASE)
7. iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) (University Institute of Information Technology)
8. iShares MSCI Taiwan UCITS ETF (ITWN)
9. ETF Xtrackers MSCI Taiwan UCITS (XMTD)
10. ETF Xtrackers MSCI USA Information Technology UCITS (XUTC)
Indicators for the best performing ETFs
Amundi MSCI Türkiye UCITS Exchange Traded Fund
• Morningstar Rating: 2 stars
• Expense ratio: 0.45%
• Morningstar Category: Turkey Stocks
The £121m Amundi MSCI Turkey ETF was the best-performing ETF in the second quarter, returning 21.64%. The passive Amundi ETF fell short of the 25.98% gain of the average fund in Morningstar’s Turkish Equity category for the quarter. Over the past 12 months, the Amundi MSCI Turkey ETF has returned 65.06%, underperforming the 77.58% gain of the average fund in its category, putting it in the 53rd percentile.
Amundi MSCI Türkiye has a Morningstar Medalist rating of Neutral. It was launched in March 2019.
iShares MSCI Türkiye UCITS Exchange Traded Fund
• Morningstar Rating: 1 star
• Expense ratio: 0.74%
• Morningstar Category: Turkey Stocks
The second best performing ETF in the second quarter was the iShares MSCI Turkey, worth £98 million. The passively managed iShares ETF returned 21.19%, underperforming the average Turkish equity fund, which gained 25.98%. Over the past 12 months, the iShares MSCI Turkey returned 61.70%, underperforming the average fund in its category’s return of 77.58%, putting it in the 84th percentile.
iShares MSCI Turkey has a negative Morningstar Medalist rating.
ETF Amundi MSCI Semiconductors ESG Screened UCITS
• Morningstar Rating: N/A
• Expense ratio: 0.35%
• Morningstar Category: Technology Stocks
The £371m Amundi MSCI Semiconductors ESG Screened ETF came in third for the quarter, returning 17.90%. The passively managed Amundi ETF outperformed the average return of 3.28% for funds in the technology equity category in the second quarter. Over the past 12 months, the Amundi ETF has returned 81.81%, better than the average fund in its category’s gain of 23.07%, putting it in the top percentile.
Amundi MSCI Semiconductors ESG Screened takes into account environmental, social and governance aspects criteria to consider. This fund has a Morningstar Medalist Rating of Silver.
Invesco Technology S&P US Select Sector UCITS ETF
• Morningstar Rating: 5 stars
• Expense ratio: 0.14%
• Morningstar Category: Technology Stocks
The £856m Invesco Technology S&P US Select Sector ETF came in fourth for the quarter, returning 14.05%. The passive Invesco ETF outperformed the average technology fund’s return of 3.28%. Over the past 12 months, the fund has gained 48.19%, outperforming the 23.07% return of funds in its category, placing it in the seventh percentile for the period.
The Invesco Technology S&P US Select Sector Index has a Morningstar Medalist Bronze rating. It was launched in December 2009.
HSBC MSCI Taiwan UCITS Capped ETF
• Morningstar Rating: 4 stars
• Expense ratio: 0.50%
• Morningstar Category: Taiwan Large Cap Stocks
The fifth best performing ETF was the £116 million HSBC MSCI Taiwan UCITS Capped ETF, which gained 13.76% in the second quarter. The passively managed HSBC ETF beat the average return of 8.09% for funds in the Taiwan large-cap equity category. Over the past year, the ETF has gained 35.81%, outperforming the average fund in its category of 32.79% and placing it in the 41st percentile.
The HSBC MSCI Taiwan UCITS Capped ETF, launched in March 2011, has a Morningstar Medalist rating of Neutral.
ETF UCITS Global X Silver Miners
• Morningstar Rating: N/A
• Expense ratio: 0.70%
• Morningstar Category: Precious Metals Equities
The £66 million Global X Silver Miners ETF was the sixth best performing UK ETF in the second quarter, returning 13.75%. The passive Global X ETF’s return outpaced the 7.49% gain of the average fund in Morningstar’s precious metals equity category. Over the past 12 months, Global X Silver Miners returned 19.20%, outperforming the 14.46% return of the average fund in its category, putting it in the 30th percentile.
The negatively rated Global X Silver Miners was launched in May 2022.
iShares S&P 500 Information Technology Sector UCITS USD (Acc) ETF
• Morningstar Rating: 5 stars
• Expense ratio: 0.15%
• Morningstar Category: Technology Stocks
The seventh best-performing ETF in the second quarter was the £6.8 billion iShares S&P 500 Information Technology Sector. The passively managed iShares ETF returned 13.74%, outperforming the average technology equity fund, which gained 3.28%. Over the past 12 months, the iShares S&P 500 Information Technology Sector returned 43.04%, outperforming the average fund in its category’s return of 23.07%, putting it in the 13th percentile.
The iShares S&P 500 Information Technology Sector Index is rated Gold by Morningstar Medalist. It was launched in November 2015.
iShares MSCI Taiwan UCITS Exchange Traded Fund
• Morningstar Rating: 3 stars
• Expense ratio: 0.74%
• Morningstar Category: Taiwan Large Cap Stocks
The £392m iShares MSCI Taiwan ETF came in eighth for the quarter, returning 13.57%. The passively managed iShares ETF outperformed the average gain of 8.09% for funds in the Taiwan large-cap equity category. Over the past 12 months, the iShares ETF has returned 34.87%, better than the average fund in its category’s return of 32.79%, putting it in the 37th percentile for performance.
The Bronze-rated iShares MSCI Taiwan was launched in October 2005.
Xtrackers MSCI Taiwan UCITS Exchange Traded Fund (ETF)
• Morningstar Rating: 4 stars
• Expense ratio: 0.65%
• Morningstar Category: Taiwan Large Cap Stocks
With a gain of 13.56%, the £91m Xtrackers MSCI Taiwan ETF ranked ninth in the second quarter. The passively managed Xtrackers ETF outperformed the average Taiwanese large-cap equity fund’s return of 8.09%. Over the past 12 months, the fund has returned 34.97%, outperforming the 32.79% return of funds in its category, putting it in the 48th percentile.
Launched in June 2007, Xtrackers MSCI Taiwan has a Morningstar Medalist Silver rating.
ETF Xtrackers MSCI USA Information Technology UCITS
• Morningstar Rating: 5 stars
• Expense ratio: 0.12%
• Morningstar Category: Technology Stocks
The tenth best performing ETF was the £1.6bn Xtrackers MSCI USA Information Technology ETF, which gained 12.65% in the second quarter. The passively managed Xtrackers ETF beat the average return of 3.28% for funds in the technology equity category. Over the past year, the Xtrackers MSCI USA Information Technology ETF has gained 41.26%, outperforming the average fund in its category’s return of 23.07% and placing it in the 16th percentile.
The Xtrackers MSCI USA Information Technology Index has a Morningstar Medalist Silver rating. It was launched in September 2017.
What are ETFs?
Exchange Traded Funds ETFs are investments that trade throughout the day on a stock exchange, much like individual stocks. They differ from traditional mutual funds, called open-end funds, which can only be bought or sold at a single price each day. Historically, ETFs have tracked indices, but in recent years, more ETFs have become actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and, more recently, cryptocurrencies.
Best ETFs: Other Ideas to Consider
Investors who want to find more of the best performing or cheapest ETFs can do the following:
• Read the latest news articles about ETFs.
• Use the ETF Selection Tool to find the best ETFs based on your specific criteria. You can search for funds based on their fees, Morningstar Medalist ratings, manager tenure, and more.
• Compare Funds and ETFs side by side and easily track their reviews, ratings and fees.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
This article was generated using automation and reviewed by Morningstar editors.