5 Best Performing ETFs in 2022

In this article, we discuss 5 best performing ETFs in 2022. If you want to see more ETFs in this selection, check out 10 Best Performing ETFs in 2022. 

5. ProShares UltraShort 20+ Year Treasury (NYSE:TBT)

YTD Share Price Gain as of December 9: 61.66%

ProShares UltraShort 20+ Year Treasury (NYSE:TBT) seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. The benchmark index comprises publicly issued U.S. Treasury securities that have a remaining maturity of more than twenty years and have $300 million or more of outstanding face value. The fund was established on April 29, 2008 and it offers a total expense ratio of 0.89%. With shares up approximately 62% year-to-date as of December 9, ProShares UltraShort 20+ Year Treasury (NYSE:TBT) is one of the best performing ETFs in 2022. 

4. ProShares UltraPro Short QQQ (NASDAQ:SQQQ)

YTD Share Price Gain as of December 9: 61.99%

ProShares UltraPro Short QQQ (NASDAQ:SQQQ) seeks daily investment results, before fees and expenses, that correspond to three times the inverse (-3x) of the daily performance of the NASDAQ 100 Index, which tracks the largest domestic and international non-financial companies listed on The Nasdaq Stock Market. ProShares UltraPro Short QQQ (NASDAQ:SQQQ) has an expense ratio of 0.98%. The fund was established in 2010 and makes distributions to shareholders quarterly. It is one of the best performing ETFs to consider. 

Microsoft Corporation (NASDAQ:MSFT) is one of the top holdings of ProShares UltraPro Short QQQ (NASDAQ:SQQQ). On December 7, Microsoft Corporation (NASDAQ:MSFT) was one of the Big Tech firms awarded contracts with a ceiling of $9 billion each by the U.S. Department of Defense. Under the contract, the company will provide the Department of Defense with cloud services across all security domains and classification levels. The expected completion date is June 8, 2028.

According to Insider Monkey’s Q3 database, 269 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), compared to 258 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust held the largest stake in the company, with 39.2 million shares worth over $9 billion. 

Diamond Hill made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.”

YTD Share Price Gain as of December 9: 71.36%

Simplify Interest Rate Hedge ETF (NYSE:PFIX) aims to hedge interest rate movements arising from increasing long-term interest rates and to benefit from market stress when fixed income volatility heightens. T­he ETF holds a significant position in over-the-counter (OTC) interest rate options which offer a direct and transparent convex exposure to huge upward moves in interest rates and interest rate volatility. Simplify Interest Rate Hedge ETF (NYSE:PFIX) has an expense ratio of 0.50% and the total assets exceeded $355 million as of December 9. The fund offers a 30-day SEC yield of 2.26% and distributes dividends monthly. With shares up over 71% year-to-date as of December 9, Simplify Interest Rate Hedge ETF (NYSE:PFIX) is one of the best performing ETFs this year. 

2. Direxion Daily Energy Bull 2X Shares (NYSE:ERX)

YTD Share Price Gain as of December 9: 87.79% 

Direxion Daily Energy Bull 2X Shares (NYSE:ERX) seeks daily investment results, before fees and expenses, or 200% of the inverse of the performance of the Energy Select Sector Index, which is provided by S&P Dow Jones Indices and includes domestic companies from the energy sector. Direxion Daily Energy Bull 2X Shares (NYSE:ERX) was founded in 2008 and offers an expense ratio of 0.94%. 

Exxon Mobil Corporation (NYSE:XOM) is the largest holding of Direxion Daily Energy Bull 2X Shares (NYSE:ERX). On December 8, the energy giant announced that it will expand its stock buyback plan to $50 billion through 2024, including $15 billion in 2022. The company said it expects to “double earnings and cash flow potential” by 2027 compared to 2019, while also delivering approximately $9 billion in structural cost savings by the end of 2023 compared to 2019 levels.

According to Insider Monkey’s Q3 data, 75 hedge funds were long Exxon Mobil Corporation (NYSE:XOM), compared to 72 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest position holder in the company, with 33.8 million shares worth nearly $3 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

1. ProShares Ultra Oil & Gas (NYSE:DIG)

YTD Share Price Gain as of December 9: 88.12%

ProShares Ultra Oil & Gas (NYSE:DIG) seeks daily investment results that correspond to two times the daily performance of the Dow Jones U.S. Oil & GasSM Index. The fund was launched on January 30, 2007 and it offers a gross expense ratio of 0.99%. It has 42 holdings in its portfolio and provides a dividend yield of 4.09%, with a quarterly distribution frequency. ProShares Ultra Oil & Gas (NYSE:DIG) invests primarily in the Oil, Gas & Consumable Fuels, Energy Equipment & Services, Semiconductors & Semiconductor Equipment, Electrical Equipment, and Electric Utilities sectors. 

Chevron Corporation (NYSE:CVX) is one of the top holdings of ProShares Ultra Oil & Gas (NYSE:DIG). On December 7, Chevron Corporation (NYSE:CVX) set a FY 2023 capital spending budget of $17 billion, at the high end of its $15 billion to $17 billion medium-term range and up more than 25% from the anticipated spending in 2022. The budget also includes nearly $2 billion for projects that lower carbon emissions or increase renewable fuels production capacity, which is more than double the 2022 budget.

According to Insider Monkey’s data, 66 hedge funds were long Chevron Corporation (NYSE:CVX) at the end of Q3 2022, compared to 59 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 165.35 million shares worth $23.75 billion. 

Diamond Hill Capital mentioned Chevron Corporation (NYSE:CVX) in its Q1 2022 investor letter. Here is what the firm had to say:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

You can also take a look at 10 Youngest Hedge Fund Billionaires and 10 Best Performing Energy ETFs in 2022.