Healthcare, Copper ETFs Top July's Worst Performers
- Healthcare and copper funds dominated July's worst-performing ETFs.
- Netflix option-income strategies fell despite strong earnings.
- A Novo Nordisk currency-hedged fund dropped 28%, leading the month's losers.
Healthcare and copper exchange-traded funds topped July's worst-performing, nonleveraged ETFs as tariff policy shifts and earnings volatility weighed on these strategies, according to FactSet data.
The Novo Nordisk A/S (B Shares) ADRhedged fund (NVOH) led declines with a 28% drop for the month, according to the data. The currency-hedged fund provides exposure to the Danish pharmaceutical giant while hedging daily currency fluctuations through swaps.
Healthcare providers also struggled, as the iShares U.S. Healthcare Providers ETF (IHF) fell 14% despite attracting $26.8 million in net inflows during July, the data show. The fund tracks a cap-weighted index of U.S. companies that provide healthcare services, excluding pharmaceutical companies.
Copper Takes a Hit
The monthly declines came as President Donald Trump announced new tariffs on copper and Brazilian imports, while Netflix shares fell despite beating earnings expectations.
Copper-related investments faced pressure after the president announced 50% tariffs on semi-finished copper products on July 9. The United States Copper Index Fund (CPER) dropped 13% during July while experiencing $10.9 million in outflows, according to FactSet.
Netflix option-income strategies also underperformed despite strong company earnings. The YieldMax NFLX Option Income Strategy ETF (NFLY) fell 11% while attracting $19.6 million in inflows, the data show. The Kurv Yield Premium Strategy Netflix ETF (NFLP) declined 13% with about $89,000 in inflows.
Volatility Products See Mixed Flows
Volatility funds continued to see heavy inflows despite declines. The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) attracted $296.9 million while falling 12%, according to FactSet. The ProShares VIX Short-Term Futures ETF (VIXY) gained $164 million in assets while also declining 12%.
Natural gas funds declined, as the United States Natural Gas Fund LP (UNG) fell 11% but still drew $139.4 million in net inflows during the month, the data indicate. The fund holds near-month futures contracts in natural gas and swap contracts.
Worst-Performing ETFs in July
Fund | July Net Fund Flows | July Return |
$367.8K | -28% | |
$26.8M | -14% | |
$0 | -14% | |
$0 | -14% | |
$88.8K | -13% | |
-$10.9M | -13% | |
$296.9M | -12% | |
$164M | -12% | |
$19.6M | -11% | |
$139.4M | -11% | |
-$15M | -11% |
Source: etf.com & FactSet Data
Brazil small-cap exposure faced headwinds, as the iShares MSCI Brazil Small-Cap ETF (EWZS) dropped 11% with $15 million in outflows. President Trump announced 50% tariffs on Brazilian imports, citing political motivations tied to Brazil's investigation of the country's former president and alignment with China.
Other funds among the worst performers included the STMicroelectronics NV ADRhedged (STHH) fund, which fell 14%, according to the data. The fund provides exposure to STMicroelectronics while using swaps to hedge daily currency fluctuations.
The Roundhill Uranium ETF (UX) also declined 14% with minimal flows, according to the data. The fund seeks to provide exposure to the spot price of physical uranium through investments in swaps.
