Core Insights - The article discusses the performance of U.S. diversified ETFs in 2025, highlighting that nearly all actively traded ETFs are up, with a few exceptions that are underperforming [1][2][3] Performance Overview - As of September 10, 2025, 276 out of 282 U.S. diversified funds with an average daily volume of at least 50,000 shares have positive returns, while only six ETFs are down [2][3] - The S&P 500 has returned over 11.5% this year, including dividends, indicating a strong market performance [3] Underperforming ETFs - The ETFs that have lost value include Simplify Volatility Premium ETF (SVOL) at -3.08%, Pacer Trendpilot US Mid Cap ETF (PTMC) at -2.95%, and Direxion HCM Tactical Enhance U.S. Equity Strategy ETF (HCMT) at -1.83% [10] - Pacer Trendpilot US Mid Cap ETF's strategy involves shifting between equities and cash based on market signals, which has resulted in a negative return of nearly 3% this year [4][6] Market Timing Issues - Todd Rosenbluth from TMX Vetta Fi notes that some ETFs struggled due to incorrect market timing strategies, which led to missed opportunities in a rising market [3][6] - Staying invested in equities has proven to be more beneficial than attempting to time the market, as evidenced by the S&P MidCap 400's increase of over 4.6% this year [6] Sector Exposure Risks - The Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) has a significant exposure to real estate, comprising over 50% of its holdings, which has negatively impacted its performance [7][8] - In contrast, the Vanguard S&P Small-Cap 600 ETF (VIOO) and iShares Russell 2000 ETF (IWM) have lower real estate exposure and have performed better, returning over 3% and nearly 8% respectively [8]