Markets
The 12 Worst Investment Funds Over the Past Decade
See this visualization first on the Voronoi app.
The 12 Worst Investment Funds Over the Past Decade
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
In this graphic, we visualize the 12 worst investment funds over the past decade, as of Dec. 31, 2023. This ranking was compiled by Morningstar, and is based on the amount of shareholder wealth lost.
The data we used to create this graphic can also be found in the table below.
| Fund | Ticker | Category | Estimated Wealth Lost ($ billions) |
|---|---|---|---|
| iShares MSCI China ETF | MCHI | Emerging Markets | -$2.8 |
| iShares Core MSCI Emerging Markets ETF | IEMG | Emerging Markets | -$3.0 |
| ProShares Short S&P 500 | SH | Inverse Equity | -$3.2 |
| ProShares UltraShort S&P 500 | SDS | Inverse Equity | -$3.3 |
| ProShares UltraPro Short S&P 500 | SPXU | Inverse Equity | -$3.7 |
| iShares China Large-Cap ETF | FXI | Emerging Markets | -$3.7 |
| PIMCO Commodity Real Return Strat 12 | PCRPX | Commodities | -$3.8 |
| ARK Genomic Revolution ETF | ARKG | Thematic | -$4.2 |
| KraneShares CSI China Internet ETF | KWEB | Emerging Markets | -$5.9 |
| ARK Innovation ETF | ARKK | Thematic | -$7.1 |
| ProShares Ultra VIX Short-Term Futures | UVXY | Volatility | -$7.2 |
| ProShares UltraPro Short QQQ | SQQQ | Inverse Equity | -$8.5 |
From this list we can see that many of these funds are focused on emerging markets like China, or follow an “inverse equity” strategy, meaning they short their respective index.
Two noteworthy outliers are the ARK Innovation ETF and ARK Genomic Revolution ETF, which attempt to invest in “disruptive innovation”. Both ETFs are actively managed.
Shorting the U.S. Market
The U.S. stock market has experienced a long-term upward trend since 2009, meaning funds that short major indices like the S&P 500 and Nasdaq 100 have suffered over the 10-year period.
Seeing the heaviest losses is the ProShares UltraPro Short QQQ (SQQQ), which seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the Nasdaq-100.
While these funds are likely unsuitable for a long-term buy and hold strategy, they can be profitable during downturns. One example would be the COVID-19 crash on March 12, 2020, where the S&P 500 fell by 12%.
Chinese Equities Stumble
Another common theme from this ranking are China-focused funds such as the KraneShares CSI China Internet ETF (KWEB).
Since their 2021 peak, Chinese stocks have lost over $6 trillion in market cap. This has been due to various reasons, including a sluggish COVID-19 recovery, a troubled real estate market, and alarming crackdowns on tech firms by government officials.
Want to learn more about global equity markets? Check out this graphic that visualizes the biggest companies on the Nasdaq, NYSE, and international exchanges.
Markets
The European Stock Market: Attractive Valuations Offer Opportunities
On average, the European stock market has valuations that are nearly 50% lower than U.S. valuations. But how can you access the market?
European Stock Market: Attractive Valuations Offer Opportunities
Europe is known for some established brands, from L’Oréal to Louis Vuitton. However, the European stock market offers additional opportunities that may be lesser known.
The above infographic, sponsored by STOXX, outlines why investors may want to consider European stocks.
Attractive Valuations
Compared to most North American and Asian markets, European stocks offer lower or comparable valuations.
| Index | Price-to-Earnings Ratio | Price-to-Book Ratio |
|---|---|---|
| EURO STOXX 50 | 14.9 | 2.2 |
| STOXX Europe 600 | 14.4 | 2 |
| U.S. | 25.9 | 4.7 |
| Canada | 16.1 | 1.8 |
| Japan | 15.4 | 1.6 |
| Asia Pacific ex. China | 17.1 | 1.8 |
Data as of February 29, 2024. See graphic for full index names. Ratios based on trailing 12 month financials. The price to earnings ratio excludes companies with negative earnings.
On average, European valuations are nearly 50% lower than U.S. valuations, potentially offering an affordable entry point for investors.
Research also shows that lower price ratios have historically led to higher long-term returns.
Market Movements Not Closely Connected
Over the last decade, the European stock market had low-to-moderate correlation with North American and Asian equities.
The below chart shows correlations from February 2014 to February 2024. A value closer to zero indicates low correlation, while a value of one would indicate that two regions are moving in perfect unison.
| EURO STOXX 50 | STOXX EUROPE 600 | U.S. | Canada | Japan | Asia Pacific ex. China |
|
|---|---|---|---|---|---|---|
| EURO STOXX 50 | 1.00 | 0.97 | 0.55 | 0.67 | 0.24 | 0.43 |
| STOXX EUROPE 600 | 1.00 | 0.56 | 0.71 | 0.28 | 0.48 | |
| U.S. | 1.00 | 0.73 | 0.12 | 0.25 | ||
| Canada | 1.00 | 0.22 | 0.40 | |||
| Japan | 1.00 | 0.88 | ||||
| Asia Pacific ex. China | 1.00 |
Data is based on daily USD returns.
European equities had relatively independent market movements from North American and Asian markets. One contributing factor could be the differing sector weights in each market. For instance, technology makes up a quarter of the U.S. market, but health care and industrials dominate the broader European market.
Ultimately, European equities can enhance portfolio diversification and have the potential to mitigate risk for investors.
Tracking the Market
For investors interested in European equities, STOXX offers a variety of flagship indices:
| Index | Description | Market Cap |
|---|---|---|
| STOXX Europe 600 | Pan-regional, broad market | €10.5T |
| STOXX Developed Europe | Pan-regional, broad-market | €9.9T |
| STOXX Europe 600 ESG-X | Pan-regional, broad market, sustainability focus | €9.7T |
| STOXX Europe 50 | Pan-regional, blue-chip | €5.1T |
| EURO STOXX 50 | Eurozone, blue-chip | €3.5T |
Data is as of February 29, 2024. Market cap is free float, which represents the shares that are readily available for public trading on stock exchanges.
The EURO STOXX 50 tracks the Eurozone’s biggest and most traded companies. It also underlies one of the world’s largest ranges of ETFs and mutual funds. As of November 2023, there were €27.3 billion in ETFs and €23.5B in mutual fund assets under management tracking the index.
“For the past 25 years, the EURO STOXX 50 has served as an accurate, reliable and tradable representation of the Eurozone equity market.”
— Axel Lomholt, General Manager at STOXX
Partnering with STOXX to Track the European Stock Market
Are you interested in European equities? STOXX can be a valuable partner:
- Comprehensive, liquid and investable ecosystem
- European heritage, global reach
- Highly sophisticated customization capabilities
- Open architecture approach to using data
- Close partnerships with clients
- Part of ISS STOXX and Deutsche Börse Group
With a full suite of indices, STOXX can help you benchmark against the European stock market.
Learn how STOXX’s European indices offer liquid and effective market access.
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