The stock market’s record rally in January left these ETFs in the dust. Very few people are trying to bounce back.

For the month, the S&P 500 SPX rose 1.6%, the Dow Jones Industrial Average DJIA rose 1.2% and the Nasdaq Composite COMP rose 1%, according to FactSet data.

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Here are some of the worst-performing exchange-traded funds in January, according to FactSet data through Wednesday, January 31st.

China ETF

China’s stock market has been rough in 2023, with declines accelerating in the first month of the new year.

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In January, concerns that a series of stimulus measures launched by Chinese authorities in recent weeks were not yet enough to reverse the deteriorating economic outlook or boost investor confidence dampened by the economic downturn. The stock fell 6.3% to end the month at its lowest level in five years. After years of self-isolation due to the coronavirus, there has been a disappointing economic recovery.

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Further complicating matters, earlier this week embattled Chinese real estate developer Evergrande

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The company faces liquidation after a Hong Kong court deemed it incapable of carrying out its restructuring plan, a long-term drag on growth in the beleaguered property development sector. Meanwhile, losses in billions of dollars worth of derivatives tied to the country’s stock indexes, so-called snowballing losses, also contributed to the recent market avalanche.

The Invesco Golden Dragon China ETF PGJ fell 14.2% this month, its worst monthly performance since a 25% drop in October 2022, while the Invesco China Technology ETF CQQQ

Stocks fell 20.5% in January, the worst month since 2011, according to Dow Jones Market Data.

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While some market participants are starting to look for reasons to buy cheap Chinese stocks, others remain unconvinced, believing the country’s economic pain may continue for some time.

“Investors typically need to see a sustained acceleration in China’s economic activity before Chinese stocks outperform,” said Alejandra Grindal, chief economist at Ned Davis Research. said. He expects the country’s monetary and fiscal support to remain in place, but given the risk of a bubble, the Chinese government has “no desire to overstimulate” and “doesn’t want to do anything on a large scale.” I predict there will be nothing.”

He wrote in a research note earlier this week that unsustainable levels of debt and a declining population may also be undermining the effectiveness of stimulus.

“We remain concerned about China’s long-term growth trajectory as the demographic outlook worsens and economic internalization continues,” Grindal said.

look: China’s declining birth rate will cause the stock market to slump. This can be expected in the following cases:

ETFs related to electric cars and Tesla

Prices of some electric vehicle stocks fell in January.

Tesla stock

TSLA

The company fell 24.6% after it reported quarterly results that “deeply disappointed” Wall Street last week, giving it its worst month since December 2022, when its stock price fell 36.7%, according to FactSet data. became.

Some clean energy ETFs that invest in Tesla and other EV manufacturers also fell this month. First Trust Nasdaq Clean Edge Green Energy Index Fund QCLN fell 17.7% in January, its worst month since October, while companies across the lithium cycle, including mining, refining and refining, fell 17.7% in January. The Global X Lithium & Battery Tech ETF LIT, which invests in the Global

ARK Innovation ETF

ARK Innovation ETF ARKK fell 13.3% in January following two of Cathie Wood’s flagship fund’s largest holdings — Coinbase Global

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Tesla Inc. is down about 25% each this month, according to FactSet data.

MarketWatch reported earlier this month that ARKK bought more than $20 million worth of Tesla stock three times in three weeks, each time targeting big down days. This was a major reversal from last year’s move to shed its large stake in the electric vehicle giant.

clean energy ETF

Clean energy ETFs were hurt by their sensitivity to rising interest rates in 2023, but their lackluster performance continued into the new year.

The Invesco Solar ETF TAN fell 20.6% in January, its biggest monthly decline since March 2020, while the iShares Global Clean Energy ETF ICLN fell 20.6% in January, according to FactSet data. It fell 11.3% during the period.

MarketWatch reported last week that President Donald Trump’s return to office could hurt this ETF sector. That comes as the former president is expected to roll back some of Biden’s centerpiece climate change policies, including the Anti-Inflation Act, $369 billion in tax cuts and subsidies for clean energy, if he can secure his policies. 2nd term.

Last year, the renewable energy sector experienced one of the toughest years in its short history due to supply chain issues, rising financing costs and a noticeable slowdown in secondary market transactions. ICLN posted an annual return of more than 140% in 2020 in the wake of Biden’s election victory, before falling for three consecutive years from 2021 to 2023, according to FactSet data.

Take a look at the worst-performing ETFs over the past month through Tuesday, according to FactSet data.