In this article, we discuss the 10 best performing actively managed ETFs in 2022. If you want to read about some more ETFs, go directly to 5 Best Performing Actively Managed ETFs in 2022.
Exchange-traded funds (ETFs) allow investors to buy a collection of stocks or other assets in just one fund with mostly low expenses, and they trade on an exchange like stocks. In the last decade, ETFs have become tremendously popular and now hold trillions of dollars in assets. An exchange-traded fund may be included in different assets, such as stocks, bonds and sometimes commodities. Most often, ETFs hold a specific index, such as the Standard & Poor’s 500 or the NASDAQ 100. So, by buying one share in the ETF, an investor effectively purchases a share in all the assets held in that fund.
Actively managed ETFs had shrunk away from the spotlight in recent years as a growth dominated marketplace favored passive funds. However, the swing towards value stocks has also increased the spotlight on actively managed ETFs. Actively managed ETFs have a manager or a team of individuals taking decisions. Cathie Wood was the most popular active ETF manager last year (see Cathie Wood is loading up on these 12 stocks), but her reputation took a big hit in 2022.
We strongly believe that active investing is the right strategy to generate superior returns. Insider Monkey focuses on the stocks that are purchased by hedge funds and corporate insiders (see 12 stocks insiders are buying), and this approach worked very well for our readers over the years. However, there are several other active investing strategies that can yield superior returns. One issue with active investing is the higher fees charged by hedge funds, mutual funds, and actively managed ETFs. The outperformance generated by these active funds has to be greater than the fees (performance and/or management fees) charged by these funds. That’s why we are Do-It-Yourself (DIY) investors.
Investors prefer actively managed ETFs over DIY investing mainly because of the convenience and the ease of trading in and out of the ETF. Some of the top stocks in the portfolios of best actively managed ETFs in 2022 included The Walt Disney Company (NYSE:DIS), Bank of America Corporation (NYSE:BAC), and The Procter & Gamble Company (NYSE:PG).
Our Methodology
The aim of the article is to provide readers with a basic rundown of the best performing actively managed ETFs in 2022. These were picked using a database managed by VettaFi, an ETF analytics firm. We picked those ETFs that posted the strongest performance in 2022, based on their YTD 2022 gains through December 29. Equity ETFs were preferred for the list. All the ETFs listed below trade on exchanges in the United States. The top holdings of each fund are mentioned alongside other details for further clarity. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to quantify the hedge fund sentiment around each top holding.
Source: pexels
Best Performing Actively Managed ETFs in 2022
10. USCF Midstream Energy Income Fund (NYSE:UMI)
Year-to-Date Return in 2022 as of December 29: 11.23%
Under normal market circumstances, the fund will endeavor to accomplish its investment goals by investing at least 80% of its net assets in equity shares of U.S. and Canadian firms of any market capitalization assessed by the sub-adviser to be active in the midstream energy sector. It plans to spend more than 25% of its entire assets in the energy, oil, and gas industries. The fund is not diverse.
As of December 29, this fund holds a volume of 17,100 along with net assets of $191.12 million. The net expense ratio of this ETF is 0.85% along with a yield of 4.08%. The net asset value is $33.46 and the current share price of this ETF is $33.48.
9. iMGP DBi Managed Futures Strategy ETF (NYSE:DBMF)
Year-to-Date Return in 2022 as of December 29: 11.76%
The fund intends to achieve its goal by investing its assets in a managed futures strategy, allocating up to 20% of its total assets in its wholly-owned subsidiary, which is organized under Cayman Islands law.
As of 29th December, iMGP DBi Managed Futures Strategy ETF holds a volume of 1,198,600 along with net assets of $1.04 billion. The net expense ratio of this ETF is 0.85% along with a yield of 4.61%. The current share price of this ETF is $29.03.
8. KFA Mount Lucas Index Strategy ETF (NYSE:KMLM)
Year-to-Date Return in 2022 as of December 29: 15.02%
The fund intends to accomplish its objective by investing in a commodity, currency, and global fixed-income futures contracts traded on US and overseas markets that are identical to or comparable to those in the index. It may also make direct and indirect investments in certain debt securities. Using trend-following techniques, the index tracks the performance of a portfolio of commodity, currency, and global fixed-income futures contracts traded on US and overseas exchanges. It is not diverse.
As of December 29, KFA Mount Lucas Index Strategy ETF holds a volume of 93,000 along with net assets of $302.52 million. The net expense ratio of this ETF is 0.92% along with a yield of 5.37%. The current share price of this ETF is $30.62.
7. InfraCap MLP ETF (NYSE:AMZA)
Year-to-Date Return in 2022 as of December 29: 15.25%
InfraCap MLP ETF (AMZA) funds seek to provide exposure to midstream master limited partnerships with an emphasis on high current income. AMZA is a complex, actively managed fund that invests in midstream MLPs that collect, process, store, or transport energy products.
As of December 29, the InfraCap MLP ETF holds a volume of 46,700 along with net assets of $337.41 million. The net expense ratio of InfraCap MLP ETF is 1.40% along with a yield of 7.20%. The current share price of this ETF is $31.50.
Energy Transfer LP (NYSE:ET) is one of the top 10 holdings of this ETF with 19.65% assets. It provides energy-related services. Among the hedge funds being tracked by Insider Monkey, Manhattan-based investment firm Select Equity Group is a leading shareholder in Energy Transfer LP (NYSE:ET) with 5.7 million shares worth more than $382.4 million.
Just like The Walt Disney Company (NYSE:DIS), Bank of America Corporation (NYSE:BAC), and The Procter & Gamble Company (NYSE:PG), Energy Transfer LP (NYSE:ET) is one of the top stocks to invest in according to elite money managers who were very successful in 2022.
6. Leatherback Long/Short Alternative Yield ETF (NYSE:LBAY)
Year-to-Date Return in 2022 as of December 29: 18.67%
The Leatherback Long/Short Alternative Yield ETF (LBAY) is an actively managed exchange-traded fund that seeks income generation and capital appreciation. The fund will have net exposure of 75% – 110% long. The fund seeks to achieve its investment objective by purchasing long positions in securities. The fund aims to achieve its investment objective by purchasing long positions in securities.
As of 29th December, Leatherback Long/Short Alternative Yield ETF holds a volume of 179,100 along with net assets of $61.93 million. The net expense ratio of the fund is 1.43% along with a yield of 2.70%. The net asset value is $29.34, and the current share price of this ETF is $29.47.
Bunge Limited (NYSE:BG) is one of the top 10 holdings of this ETF with 5.22% assets. It operates as an agribusiness and food company worldwide. At the end of the third quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $763 million in Bunge Limited (NYSE:BG), compared to 48 in the previous quarter worth $729 million.
Along with The Walt Disney Company (NYSE:DIS), Bank of America Corporation (NYSE:BAC), and The Procter & Gamble Company (NYSE:PG), Bunge Limited (NYSE:BG) is one of the top stocks to invest in according to elite money managers who were very successful in 2022.
In its Q1 2022 investor letter, Old West Investment Management, an asset management firm, highlighted a few stocks and Bunge Limited (NYSE:BG) was one of them. Here is what the fund said:
“Bunge (pronounced BUN-GEE) Ltd (NYSE:BG) is one of the biggest agribusinesses and food companies in the world. Four worldwide companies dominate the sector, the others being Archer-Daniels-Midland Cargill and Dreyfuss. One of our favorite ways to screen for new ideas is following insider buying. When I saw Form 4 filed by new Bunge CEO Greg Heckman, his purchase of $9 million of BG stock intrigued me. My initial thought was the company gave him the stock as a signing bonus. I contacted BG Investor Relations and asked whether it was a signing bonus or did Heckman write a check for $9 million. IR assured me it was his own hard-earned money that he invested in the company he was about to run.
Heckman was a long-time executive at Conagra Foods who sensed an opportunity at BG. One of his first moves as CEO was to move the company’s HQ from New York to St. Louis, right in the middle of America’s breadbasket. BG had been plagued for years with poor decisions by underperforming management. Heckman’s decision to move to St. Louis was indicative of a no-nonsense style and he would commence cutting expenses and selling non-core assets…read more
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Disclosure. None. 10 Best Performing Actively Managed ETFs in 2022 is originally published on Insider Monkey.