Exchange-traded funds, or ETFs, are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices in an attempt to beat the market. The best ones serve as building blocks for a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In the second quarter of 2024, the top-performing ETFs included Turkey equity funds Amundi MSCI Turkey (TUR) and iShares MSCI Turkey (IDTK). Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
To find the quarter’s best-performing ETFs, we screened those in Morningstar’s equity, allocation, or fixed-income categories that are available in the UK. We excluded exchange-traded notes, known as ETNs, and ETFs with less than $25 million (£19.7 million) in total assets. 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 quoted in GBP.
Within our list, two funds fell into the Turkey equity category, where the average name rose 25.98% in the second quarter.
The 10 Best-Performing ETFs for Q2 2024
1. Amundi MSCI Turkey UCITS ETF (TUR)
2. iShares MSCI Turkey UCITS ETF (IDTK)
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. Global X Silver Miners UCITS ETF (SILV)
7. iShares S&P 500 Information Technology Sector UCITS ETF USD (Acc) (IUIT)
8. iShares MSCI Taiwan UCITS ETF (ITWN)
9. Xtrackers MSCI Taiwan UCITS ETF (XMTD)
10. Xtrackers MSCI USA Information Technology UCITS ETF (XUTC)
Metrics for the Best-Performing ETFs
Amundi MSCI Turkey UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.45%
• Morningstar Category: Turkey Equity
The £121 million Amundi MSCI Turkey was the best-performing ETF in the second quarter, with a 21.64% return. The passively managed Amundi ETF fell short of the 25.98% gain on the average fund in Morningstar’s Turkey equity category for the quarter. Over the last 12 months, Amundi MSCI Turkey has returned 65.06%, underperforming the 77.58% gain on the average fund in its category, leaving the ETF in the 53rd percentile.
Amundi MSCI Turkey has a Morningstar Medalist Rating of Neutral. It was launched in March 2019.
iShares MSCI Turkey UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 0.74%
• Morningstar Category: Turkey Equity
The second-best performing ETF in the second quarter was the £98 million iShares MSCI Turkey. The passively managed iShares ETF returned 21.19%, underperforming the average Turkey equity fund, which gained 25.98%. Looking back over the last 12 months, iShares MSCI Turkey has returned 61.70%, underperforming the 77.58% return on the average fund in its category, leaving the ETF in the 84th percentile.
iShares MSCI Turkey has a Negative Morningstar Medalist Rating.
Amundi MSCI Semiconductors ESG Screened UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The £371 million Amundi MSCI Semiconductors ESG Screened ranked third for the quarter, returning 17.90%. The Amundi ETF, which is passively managed, topped the 3.28% average return on funds in the equity technology category for the second quarter. Over the last 12 months, the Amundi ETF has returned 81.81%, ahead of the 23.07% gain on the average fund in its category, leaving the ETF in the first percentile.
Amundi MSCI Semiconductors ESG Screened takes environmental, social, and governance criteria into consideration. 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: Equity Technology
With a 14.05% return, the £856 million Invesco Technology S&P US Select Sector ranked fourth in the quarter. The passively managed Invesco ETF outperformed the 3.28% return on the average equity technology fund. Over the last 12 months, the fund has gained 48.19%, ahead of the 23.07% return on funds in its category, placing it in the seventh percentile for the period.
Invesco Technology S&P US Select Sector has a Bronze Morningstar Medalist 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 Equity
The fifth-best performing ETF was the £116 million HSBC MSCI Taiwan UCITS Capped ETF, which gained 13.76% in the second quarter. This passively managed HSBC ETF beat the 8.09% average return on funds in the Taiwan large-cap equity category. Over the past year, the ETF rose 35.81%, outperforming the 32.79% return on the…
Read More: The Best-Performing ETFs of the Quarter