Hedgeye Podcasts Hedgeye NexGen | Episode 29 | The ETF Wall of Shame
Jan 23, 2026
A sharp rundown of the worst ETFs on the market, ranked in a ruthless 'Wall of Shame' format. They call out yacht funds with absurd fees, private‑credit and fund‑of‑fund structures that underperform, and failed tactical and short strategies. The conversation highlights high yields that mask poor results and active funds that charge for underperformance.
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High-Yield ETFs Can Hide Net Negative Carry
- Many high-yield ETFs charge expense ratios that eclipse their dividend yields and erode investor returns.
- Ryan Ricci highlights PBDC as charging 13.5% while offering ~10% yield, effectively netting investors negative carry.
High Dividend Doesn’t Guarantee Outperformance
- Dividend-focused ETFs often underperform broad indices despite high yields and elevated fees.
- Ben Perko and Ryan show KBWD returned far less than the S&P 500 since 2010 while charging a 5.4% fee.
Generate Income Without Paying Excess Fees
- Avoid buying high-dividend ETFs as a shortcut to income without checking net returns and fees.
- Sell or trim appreciated holdings in a brokerage account to generate income more efficiently than paying large ETF fees.
