In this article, we will discuss the 5 best performing growth ETFs in 2022. If you want to explore similar ETFs, you can also read 10 Best Performing Growth ETFs in 2022.
5. Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT)
YTD Return as of December 8: -18.04%
The Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT) invests in small-cap growth stocks. The fund tracks the returns of the S&P SmallCap 600 Capped Information Technology Index and employs a full replication technique. The Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT) has an expense ratio of 0.29% and holds $316 million in assets under management, as of December 8.
The Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT) is placed high on our list of the best performing growth ETFs in 2022. The fund has shed 18.04% year to date, as of December 8, and has outperformed the Nasdaq by over 12%. The fund has 71 holdings and a top ten holdings concentration of 32.70%.
Among the top holdings of the Invesco S&P SmallCap Information Technology ETF (NASDAQ:PSCT) we have Fabrinet (NYSE:FN), a leading provider optical packaging and precision optical, electro-mechanical and electronic manufacturing services. As of September 30, Royce & Associates is the dominant shareholder in Fabrinet (NYSE:FN) and has disclosed a position of $32.2 million.
On November 8, Needham analyst Alex Henderson raised his price target on Fabrinet (NYSE:FN) to $140 from $135 and reiterated a Buy rating on the shares.
4. First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR)
YTD Return as of December 8: -16.28%
The First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR) invests in growth stocks, and more particularly, blockchain technology stocks. The fund has an expense ratio of 0.65% and is yielding 3.22%. The fund pays out dividends on a quarterly basis. The First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR) uses a full replication technique to track the returns of the Indxx Blockchain Index.
As of December 8, the First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR) has fallen by 16.28 year to date and is ahead of the Nasdaq composite by over 13%. The fund is ranked among the best performing growth ETFs in 2022. The fund has 107 holdings and a top ten holdings concentration of 14.34%.
SAP SE (NYSE:SAP) is ranked among the top ten holdings of the First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR). On December 2, Stifel analyst Brad Reback raised his price target on SAP SE (NYSE:SAP) to EUR 135 from EUR 130 and reiterated a Buy rating on the shares.
As of September 30, Fisher Asset Management is the top investor in SAP SE (NYSE:SAP) and has stakes worth $549.63 million.
Here is what Polen Capital had to say about SAP SE (NYSE:SAP) in its third-quarter 2022 investor letter:
“SAP SE (NYSE:SAP) is Europe’s largest software company and the global leader in enterprise resource planning (ERP) software. ERP is a software category that is particularly critical to business functions, and, therefore, has high retention rates even in times of economic stress. For the past several years, SAP has been going through several transitions, including moving to cloud-based SaaS (Software as a service) solutions and an initiative to better integrate its various software solutions. In recent quarters, we have seen increasing evidence that both transitions are being successfully executed, and the result should be a faster-growing, more consistent, higher margin, and more advantaged business. As investment costs from these transition programs wane, and as the benefits of higher growth continue, we expect that earnings will grow at a double-digit rate from next year (2023) onwards. In light of this, we believe the valuation is very attractive for longterm investors.”
3. KraneShares CSI China Internet ETF (NYSEARCA:KWEB)
YTD Return as of December 8: -15.68%
The KraneShares CSI China Internet ETF (NYSEARCA:KWEB) invests in Chinese growth stocks that belong to the IT services, internet services and infrastructure, software, application software, and internet software sectors. The fund uses a representative sampling technique to mirror the returns of the CSI Overseas China Internet Index. As of December 8, the fund has lost 15.68% year to date but has outperformed the Nasdaq by roughly 14.5%. This justifies its inclusion in our rankings of the best performing growth ETFs in 2022.
The KraneShares CSI China Internet ETF (NYSEARCA:KWEB) has an expense ratio of 0.69% and is yielding 8.70%. The fund’s assets under management, as of December 8, are valued at $5.78 billion. The fund has 43 holdings and a top ten holdings concentration of 63.50%.
One of the top holdings of the KraneShares CSI China Internet ETF (NYSEARCA:KWEB) is Chinese e-commerce giant, Alibaba Group Holding Limited (NYSE:BABA). As of September 30, Generation Investment Management is the dominant shareholder in Alibaba Group Holding Limited (NYSE:BABA) and has disclosed a position worth $360.74 million.
On November 18, UBS analyst Jerry Liu updated his price target on Alibaba Group Holding Limited (NYSE:BABA) to $135 from $140 and reiterated a Buy rating on the shares.
Here is what Polen Capital had to say about Alibaba Group Holding Limited (NYSE:BABA) in its third-quarter 2022 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”
2. iShares North American Tech-Multimedia Networking ETF (NYSEARCA:IGN)
YTD Return as of December 8: -13.66%
The iShares North American Tech-Multimedia Networking ETF (NYSEARCA:IGN) employs a representative sampling technique to mirror the returns of the S&P North American Technology Multimedia Networking Index. As of December 8, the fund has lost 13.66% year to date, outperforming the Nasdaq by over 16%. The iShares North American Tech-Multimedia Networking ETF (NYSEARCA:IGN) is one of the best performing growth ETFs in 2022.
The iShares North American Tech-Multimedia Networking ETF (NYSEARCA:IGN) has an expense ratio of 0.40% and is offering a dividend yield of 0.25%. The fund has 25 holdings and a top ten holdings concentration of 67.58%.
Among the top holdings of the iShares North American Tech-Multimedia Networking ETF (NYSEARCA:IGN) we have Cisco Systems, Inc. (NASDAQ:CSCO). On November 17, Cowen analyst Paul Silverstein raised his price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $61 from $60 and maintained an Outperform rating on the shares.
As of September 30, Two Sigma Advisors is the dominant stockholder in Cisco Systems, Inc. (NASDAQ:CSCO) and has a position worth $388 million.
1. ProShares S&P Technology Dividend Aristocrats ETF (BATS:TDV)
YTD Return as of December 8: -11.68%
The ProShares S&P Technology Dividend Aristocrats ETF (BATS:TDV) invests in dividend paying growth stocks. The fund tracks the performance of the S&P Technology Dividend Aristocrats Index and employs a full replication technique. The ProShares S&P Technology Dividend Aristocrats ETF (BATS:TDV) has an expense ratio of 0.45% and is yielding 1.54%. The fund pays out dividends on a quarterly basis.
As of December 8, the ProShares S&P Technology Dividend Aristocrats ETF (BATS:TDV) has lost 11.68% year to date and has outperformed the Nasdaq by more than 18%. This justifies its place among the best performing growth ETFs in 2022. The fund has 41 holdings and a top ten holdings concentration of 26.16%.
Texas Instruments Incorporated (NASDAQ:TXN) is one of the most prominent holdings of the ProShares S&P Technology Dividend Aristocrats ETF (BATS:TDV). As of September 30, First Eagle Investment Management is the top investor in Texas Instruments Incorporated (NASDAQ:TXN) and has a stake worth $556 million.
On October 26, Deutsche Bank analyst Ross Seymore revised his price target on Texas Instruments Incorporated (NASDAQ:TXN) to $155 from $160 and reiterated a Hold rating on the shares.
Here is what Diamond Hill Capital had to say about Texas Instruments Incorporated (NASDAQ:TXN) in its third-quarter 2022 investor letter:
“Other top contributors in Q3 included health insurance company Humana, semiconductor manufacturer Texas Instruments Incorporated (NASDAQ:TXN) and home improvement retailer Home Depot. Shares of Texas Instruments outperformed as the COVID lockdowns eased in China, and customers could accept the product shipments leading to an upside in expectations.”
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