Equity exchange-traded funds are tax-efficient instruments that allow investors to track popular indexes or leverage experienced manager choices to beat the market.
The best ones, Morningstar data journalist Bella Albrecht wrote in a recent blog post, are low-cost building blocks in a portfolio; unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
When evaluating ETFs, Albrecht wrote, investors should focus on long-term returns across multiple years and market cycles. But looking at short-term returns can provide valuable information about biases within strategies.
Albrecht identified the worst-performing stock ETFs in August. Analysts screened the ones in the Morningstar U.S. equity category that trade within the country, excluding exchange-traded notes and ETFs with less than $100 million in total assets.
See the accompanying gallery for the 10 worst-performing stock ETFs in August.
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