2026's Worst-Performing ETFs Include Crypto and Chinese Tech Funds
The year 2026 has been a strong one for major stock indices, with the Vanguard S&P 500 ETF (VOO) up 13% and the Invesco QQQ Trust (QQQ) gaining 21% through the first three quarters. However, not all exchange-traded funds (ETFs) have shared in this success. Several have posted significant losses, with the Opportunistic Trader ETF (WZRD) leading the decline, down a staggering 98% so far this year.
The WZRD fund, managed by Larry Benedict, a figure profiled in Jack Schwager's Market Wizards, combines large-cap US stocks with active options trading. However, the options strategy has dominated, resulting in severe losses. The fund's assets have dwindled to about $707,000 from a peak of $23 million shortly after its launch, with its top holdings now consisting of short-term options on the S&P 500.
Other underperformers include crypto income funds and Chinese tech ETFs. For instance, the Amplify XRP 3% Monthly Option Income ETF (XRP) is down 43%, while the KraneShares CSI China Internet ETF (KWEB) has lost 28%. The volatility in these sectors has contributed to their poor performance, with sharp drawdowns followed by recoveries proving particularly costly for income-focused funds.
The list of worst-performing ETFs of 2026 also includes funds tied to Indonesia, palladium, and lithium mining, reflecting broader market challenges in emerging markets and commodities. The VanEck Indonesia Index ETF (IDX) is down 35%, and the Sprott Lithium Miners ETF (LIT) has declined 24%. These losses highlight the varied risks and sector-specific challenges that investors face in 2026.