Digital assets funds experienced a significant downturn in fourth-quarter 2025, which brought down performance for the year. A sell-off of digital assets occurred in October, sparked by a sudden escalation of the trade war between the U.S. and China. This caused crypto ETFs amplified by high levels of leverage among traders to plummet. Margin calls forced brokers to liquidate positions, pushing down prices across the market. Even unlevered investors suffered as valuations tumbled. The combination of external macroeconomic shocks and excessive borrowing created a cascading effect that reverberated throughout the sector.

ETFs investing in oil were also among the worst performers in 2025. U.S. oil production hit record levels in 2025, adding to the global supply base and contributing to downward pressure on prices when demand growth was moderate.

Cloud computing stocks struggled in 2025 as valuation pressures, slowing enterprise information technology (IT) spending and competitive dynamics converged. On average, cybersecurity budgets grew 4% in 2025, down from 8% in the prior year, likely driven by economic uncertainty, according to the 2025 Security Budget Benchmark Report published midyear by IANS Research and Artico Search.

Grayscale Ethereum Classic Trust ETF (ETCG) was the worst performer, losing 55.4%. This ETF tracks the value of cryptocurrency ethereum classic. Among other differences, ethereum classic has a fixed limit of coins that can be issued, whereas ethereum does not. This ETF also trades over the counter (OTC). Twenty three digital assets–focused ETFs are included in Table 2.

Download the Excel spreadsheet of Table 2.

Volatility ETFs also ranked among the year’s worst performers. ProShares VIX Short-Term Futures ETF (VIXY) and iPath B S&P 500 VIX Short-Term Futures ETN (VXX) were down 42.9% and 42.1%, respectively. These products are designed to perform well during periods of high volatility. Equity markets remained relatively steady in 2025, with the exception of the tariff-driven turbulence in April.

YieldMax MSTR Option Income Strategy ETF (MSTY) lost 41.8% in 2025. The fund is actively managed and seeks exposure to the common stock of Strategy Inc. (MSTR). Strategy operates as a bitcoin treasury company that provides investors varying degrees of economic exposure to bitcoin by offering a range of securities, including equity and fixed-income instruments.

Two actively managed mid-cap growth ETFs lost ground in 2025 and are included in Table 2. The category gained 13.4% for the year.