Worst-Performing ETFs of April

April brought intense volatility to the U.S. stock market, largely driven by former President Donald Trump’s aggressive tariff measures. The most notable of these was the announcement of “Liberation Day” tariffs, which sent shockwaves through financial markets.

In just two days, the Dow Jones Industrial Average fell more than 4,000 points — a 9.5% plunge. The S&P 500 and the Nasdaq followed suit, with the Nasdaq entering bear market territory. Though markets have since recouped some losses on hints of trade de-escalation, uncertainty continues to linger.

Overall, the S&P 500 lost 1.8%, the Dow Jones retreated 3.7%, the Nasdaq Composite was off 0.9% and the Russell 2000 plunged about 4% in April.

Hints of Tariff Rollbacks and/or Deals Fuel Market Stabilization

The universal 10% import tariff, alongside country-specific levies — most notably the steep 145% tariff on Chinese imports — had a profound impact on market sentiment earlier in the month. The result was a swift sell-off, with major indices entering bear market territory.

However, recent developments signal potential relief. China is reportedly considering suspending its 125% tariffs on select U.S. products. However, Trump doubled down on the China tariffs, saying, “they deserve it.”

Meanwhile, President Trump rolled back auto tariffs following concerns raised by major automobile manufacturers. In another relief measure, companies already subject to tariffs on components and raw materials will be spared from the new steel and aluminum taxes targeting imports from Canada and Mexico. These conciliatory moves have helped lift investor confidence.

Strong Q1 Earnings, But Clouds Ahead

Roughly one-third of the way through the first-quarter earnings season, corporate results have largely exceeded expectations. According to early reports, the S&P 500 companies have delivered earnings 7% above forecasts and revenues 1% ahead of consensus. However, despite a strong start, there has been a dramatic reversal in expectations for the rest of 2025.

Losing ETF Areas in Focus

Against this backdrop, below we highlight a few losing exchange-traded fund (ETF) areas of April. 

Energy – VanEck Oil Services ETF OIH – Down 20.2% in April

Oil prices had a downbeat month in April as global trade tensions weakened the demand outlook.United States Oil Fund LP USO lost 17.5% and United States Brent Oil Fund LP BNO retreated 16.7% in April. Brent crude is heading toward its largest monthly decline since 2021. 

The price drop has been driven by the sharp escalation of U.S. tariffs on global trade partners and OPEC+ discussions to boost oil production (read: Oil's Worst Month Since 2021: Will Energy ETFs Rebound?).

Copper – United States Copper ETF CPER – Down 9.5%

The fund reflects the performance of the investment returns from a portfolio of copper futures contracts on the COMEX exchange. Copper prices fell in April due to mounting recession concerns in the United States. China's official manufacturing PMI from the NBS fell to a 16-month low, with export orders falling at the steepest rate since 2022. China is a major user of copper.

China – Invesco Golden Dragon China ETF PGJ – Down 8.9%

The decline in Chinese shares is understandable as China was slapped with 145% import tariffs by the Trump administration.  China’s economy grew 5.4% year on year in Q1 of 2025, maintaining the same pace as in Q4 and exceeding market expectations of 5.1%. It remained the strongest annual growth rate in one and a half years amid Beijing's ongoing stimulus.

U.S. Dividend – Schwab U.S. Dividend Equity ETF SCHD – Down 7.7%

The fund yields 4.03% annually and charges 6 bps in fees. The fund is heavy on energy stocks (21.08%), Consumer Staples (19.06%) and Health Care (15.68%). Energy stocks suffered a lot in April, which in turn hit the ETF SCHD hard. Healthcare stocks have also been under pressure due to Trump tariff tensions and Trump’s negative comments about pharma pricing.

Transportation – SPDR S&P Transportation ETF XTN – Down 6.8%

The S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. The fund charges 35 bps in fees and yields 1.13% annually. Fears of economic slowdown amid tariff tensions weighed on this transportation fund.

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This article originally published on Zacks Investment Research (zacks.com).

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