The Worst Performing ETFs of 2024

Loser: Marijuana ETFs

ETFs holding marijuana stocks were among the biggest losers of 2024, not due to any single event, but rather a confluence of negative factors.

Across Canada and the U.S., the cannabis industry continues to grapple with oversupply, unprofitable and cash-negative business models, frequent stock dilutions and reverse splits, and persistent regulatory hurdles that show little sign of easing in the near future.

As a result, all three of the notable marijuana ETFs suffered steep losses this year. The Amplify U.S. Alternative Harvest ETF

, AdvisorShares Pure US Cannabis ETF

MSOS

-2.37%

, and Roundhill Cannabis ETF

WEED

-1.82%

posted declines of 62.60%, 62.16%, and 61.56%, respectively.

Loser: Lithium Miner ETFs

Aside from strong performances by Tesla and BYD, the EV industry faced headwinds throughout 2024 due to slowing sales growth, reduced market penetration, and weakening demand. This downturn rippled through the supply chain, hitting one of its most crucial components: lithium.

Lithium, essential for lithium-ion batteries used in EVs, is a commodity prone to boom-or-bust cycles. Lithium miners, in particular, are highly leveraged operations, meaning they take on significant debt to finance extraction and production during times of high demand.

While this structure amplifies profits during booms, it also magnifies losses when prices or demand drop—making 2024 a bust year for the industry.

As a result, lithium miner ETFs suffered sharp declines. The iShares Lithium Miners and Producers ETF

and the Sprott Lithium Miners ETF

LITP

-3.78%

ended the year down 44.4% and 43.8%, respectively.

Loser: Shipping ETFs

Bulk shipping stocks are notoriously volatile due to their reliance on fluctuating global trade demand and commodity prices.

These companies operate cargo vessels that transport large quantities of raw materials such as coal, iron ore, and grain across major trade routes, including the Atlantic, Pacific, and Indian Oceans. Key chokepoints like the Suez Canal and the Red Sea play a critical role in these operations.

In 2024, ongoing conflict in the Middle East and volatile commodity prices weighed heavily on the sector. The Houthis’ targeting of cargo vessels in the Red Sea disrupted shipping lanes, while tensions in the region further increased operational risks and costs.

Against this backdrop, the Breakwave Dry Bulk Shipping ETF

emerged as a casualty of these challenges, posting a decline of 42.86% for the year.

This article is for informational purposes only and does not in any way constitute investment advice. The author may express their own opinions, which may not represent the opinions of ETF Central or its affiliated partners. It is essential that you seek advice from a registered financial professional prior to making any investment decisions.