In this article, we will discuss the 5 best performing small-cap ETFs in 2022. If you want to explore similar ETFs, you can read 10 Best Performing Small-Cap ETFs in 2022.
5. Invesco S&P SmallCap Consumer Staples ETF (NASDAQ:PSCC)
YTD Return as of December 9: -4.44%
The Invesco S&P SmallCap Consumer Staples ETF (NASDAQ:PSCC) has lost 4.44% year to date, as of December 9, and is ranked among the best performing small-cap ETFs in 2022. The fund tracks the performance of the S&P SmallCap 600 Capped Consumer Staples Index, by using a full replication technique. The fund has an expense ratio of 0.29% and pays out dividends on a quarterly basis.
The Invesco S&P SmallCap Consumer Staples ETF (NASDAQ:PSCC) has 31 holdings concentrated in the consumer defensive and materials segments. The fund has a top ten holdings concentration of 52.67%. Among the fund’s most prominent holdings we have United Natural Foods, Inc. (NASDAQ:UNFI).
On November 29, Deutsche Bank analyst Krisztina Katai raised her price target on United Natural Foods, Inc. (NASDAQ:UNFI) to $47 from $46 and maintained a Hold rating on the shares.
As of September 30, Intrinsic Edge Capital is the top investor in United Natural Foods, Inc. (NASDAQ:UNFI) and has a position worth $19.44 million in the company.
4. ProShares Russell 2000 Dividend Growers ETF (BATS:SMDV)
YTD Return as of December 9: -3.80%
As of December 9, the ProShares Russell 2000 Dividend Growers ETF (BATS:SMDV) has lost 3.80% year to date and has outperformed the S&P 500 by over 14%. The fund is one of the best performing small-cap ETFs in 2022 and uses a full replication technique to mirror the returns of the Russell 2000 Dividend Growth Index. The fund has an expense ratio of 0.40% and is yielding 2.30%.
The ProShares Russell 2000 Dividend Growers ETF (BATS:SMDV) has 100 holdings and a top ten holdings concentration of 11.33%. The fund has investments concentrated in the industrials, financials, utilities, and materials segments. Lindsay Corporation (NYSE:LNN) is one of the top ten holdings of the fund. As of the end of Q3 2022, Royce & Associates is the largest investor in Lindsay Corporation (NYSE:LNN) and has a stake worth over $66 million.
On October 11, Stifel analyst Nathan Jones updated his price target on Lindsay Corporation (NYSE:LNN) to $173 from $176 and maintained a Buy rating on the shares.
3. Invesco S&P SmallCap Materials ETF (NASDAQ:PSCM)
YTD Return as of December 9: -2.32%
The Invesco S&P SmallCap Materials ETF (NASDAQ:PSCM) has an expense ratio of 0.29% and is offering a yield of 0.83%. The fund pays out dividends on a quarterly basis. The fund invests in small-cap materials stocks and uses a full replication technique to mirror the returns of the S&P SmallCap 600 Capped Materials Index. As of December 9, the fund has lost 2.32% year to date and is one of the best performing small-cap ETFs in 2022.
The Invesco S&P SmallCap Materials ETF (NASDAQ:PSCM) has $19.12 million in assets under management and has 34 holdings, with a top ten holdings concentration of 60.31%. Livent Corporation (NYSE:LTHM) is one of the most notable holdings of the Invesco S&P SmallCap Materials ETF (NASDAQ:PSCM).
On October 27, B. Riley analyst Matthew Key raised his price target on Livent Corporation (NYSE:LTHM) to $32 from $30, after taking coverage of the name with a Neutral rating.
As of September 30, Joho Capital is the top shareholder in Livent Corporation (NYSE:LTHM) and has disclosed a position of over $91.2 million.
Here is what First Pacific Advisors had to say about Livent Corporation (NYSE:LTHM) in its third-quarter 2022 investor letter:
“Livent Corporation (NYSE:LTHM) is an integrated, low-cost lithium miner and processor that was spun out of FMC Corporation in 2018.9 Lithium is an essential component of electric vehicle batteries, is chronically undersupplied and spot Lithium Carbonate continues to hit new highs even as other commodity prices have come down. 10 Livent is currently running at roughly breakeven profitability, but our work suggests they will benefit from rising Lithium prices and credible capacity expansion plans. This is an unusual investment for us – we are generally wary of our ability to forecast commodity markets and we have sized the Livent position commensurately.”
2. Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE)
YTD Return as of December 9: 35.64%
As of December 9, the Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE) has gained 35.64% year to date and is placed high on our list of the best performing small-cap ETFs in 2022. The fund uses a full replication technique to mirror the performance of the S&P SmallCap 600 Capped Energy Index. The fund has an expense ratio of 0.29% and $152.64 million in assets under management.
The Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE) has a top ten holdings concentration of 64.44% and a total of 27 holdings. The fund’s investments are concentrated in the energy and materials segments. One of the most notable holdings of the Invesco S&P SmallCap Energy ETF (NASDAQ:PSCE) is Green Plains Inc. (NASDAQ:GPRE).
This October, BofA analyst Steve Byrne revised his price target on Green Plains Inc. (NASDAQ:GRPE) to $35 from $43 and maintained a Neutral rating on the shares.
At the close of Q3 2022, Ancora Advisors was the dominant stockholder in Green Plains Inc. (NASDAQ:GPRE) and held a position worth $119.6 million in the company.
1. SPDR S&P Oil & Gas Equipment & Services ETF (NYSEARCA:XES)
YTD Return as of December 9: 41.49%
Topping our list of the best performing small-cap ETFs in 2022 is the SPDR S&P Oil & Gas Equipment & Services ETF (NYSEARCA:XES). The fund uses a representative sampling technique to track the returns of the S&P Oil & Gas Equipment & Services Select Industry Index. As of December 9, the fund has gained 41.49% year to date and has outperformed the S&P 500 by over 59%. The fund has an expense ratio of 0.35% and is offering a yield of 0.36%.
The SPDR S&P Oil & Gas Equipment & Services ETF (NYSEARCA:XES) has $320.06 million and a top ten holdings concentration of 42.23%. The fund has 35 investments concentrated in the energy sector. Of the fund’s top ten holdings, Halliburton Company (NYSE:HAL) is the most notable one. As of September 30, Pzena Investment Management is the top stockholder in Halliburton Company (NYSE:HAL) and has disclosed a position worth $384.5 million in the company.
On December 9, Raymond James analyst James Rollyson started coverage of Halliburton Company (NYSE:HAL) with a Strong Buy rating and a $53 price target.
Here is what Aristotle Atlantic Partners, LLC had to say about Halliburton Company (NYSE:HAL) in its third-quarter 2022 investor letter:
“Halliburton Company (NYSE:HAL) provides energy, engineering and construction services and is a manufacturer of products for the energy industry. The company offers services and products and integrated solutions to customers in the exploration, development, and production of oil and natural gas. Halliburton operates two business segments: Completion & Production and Drilling & Evaluation.
Our conviction in longer-term operating leverage is supported by the focus on improving cost structures. Upstream oil and gas spending over the longer term can benefit Exploration & Production (E&P) firms from sustained high oil and gas prices and a renewed urgency in global energy security. We believe the rightsizing of the company’s cost structure and forward focus on margins at the same time as E&Ps respond to new investment signals will drive both topline and bottom-line growth.”
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