American Association of Individual Investors

American Association of Individual Investors

2026 Top ETFs Guide: The 50 Worst-Performing ETFs of 2025

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AAII
Feb 17, 2026
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Featured Tickers:ETCG,MSTR,MSTY,VIXY,VXX

Digital assets funds experienced a significant downturn in fourth-quarter 2025, which brought down performance for the year. A sell-off of digital assets occurred in October, sparked by a sudden escalation of the trade war between the U.S. and China. This caused crypto ETFs amplified by high levels of leverage among traders to plummet. Margin calls forced brokers to liquidate positions, pushing down prices across the market. Even unlevered investors suffered as valuations tumbled. The combination of external macroeconomic shocks and excessive borrowing created a cascading effect that reverberated throughout the sector.

ETFs investing in oil were also among the worst performers in 2025. U.S. oil production hit record levels in 2025, adding to the global supply base and contributing to downward pressure on prices when demand growth was moderate.

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