5 Worst Performing Industries in 2023

In this article, we discuss 5 worst performing industries in 2023. If you want to read our detailed discussion on the performance of the stock market in 2023, head over to 15 Worst Performing Industries In 2023.

5. Electric Vehicles

Industry ETF: Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF (NASDAQ:EVMT)

YTD Performance of Industry ETF as of October 31: -25.52%

According to J.P. Morgan,  the cost of cars has been rising, much like other consumer products. When coupled with the surging gas prices and interest rates, this is increasing the burden of owning a car and slowing down car sales, making the vehicle industry one of the worst performing industries. In the third quarter of 2023, PwC reported that battery electric vehicle (BEV) sales increased by 26% across twenty analyzed markets compared to the same period last year. However, this growth would have been even more substantial if not for a slowdown in the Chinese BEV market, which heavily influences global BEV sales. In fact, Chinese BEV sales made up two-thirds of all BEV sales in the analyzed markets during this period. The decline in BEV sales in China is attributed to a weakening economic outlook, resulting in considerably lower growth compared to two years ago.

The Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF (NASDAQ:EVMT) is one of the electric vehicle ETFs in the red this year. It is an actively managed ETF with the goal of investing in futures and financial instruments linked to metals essential for manufacturing electric vehicles. It aims to achieve long-term capital growth by outperforming the S&P GSCI Electric Vehicle Metals Index. The ETF was launched on April 27, 2022, and, as of October 30, 2023, it has a total expense ratio of 0.73% and holds a portfolio of 13 stocks. The ETF’s performance was down by 25.52% year-to-date.