Best ETFs of 2022 by Performance
We highlight 10 of the top-performing ETFs so far this year.
The best performing ETFs of 2022 are primarily in the energy sector, with one outlier fund tracking an index of Turkish stocks. It’s no surprise that energy dominates our list as crude oil remains near five-year highs even after the commodity’s price has retreated to where it started the year.
The 10 Best ETFs of 2022
To arrive at our final 10 best ETFs of 2022, we used our ETF Finder and sorted by the year-to-date return, which was through November 23, 2022. We excluded ETFs that engage in alternative strategies, such as leveraged ETFs and ETNs, which are generally not used by the typical ETF investor.
iShares MSCI Turkey ETF
The IShares MSCI Turkey ETF (TUR) seeks to track the performance of a market-cap-weighted index composed of Turkish stocks. This fund’s recent outperformance can be partially explained by the Turkish government’s central bank rate cuts even as their economy faces extreme inflation.
- YTD 2022 return: 79.88%
- Assets under management: $345.80M
- Expense ratio: 0.57%
- As of date: November 23, 2022
Invesco Dynamic Energy Exploration & Production ETF
The Invesco Dynamic Energy Exploration & Production ETF (PXE) tracks an index of U.S. energy exploration and production companies selected and weighted by growth and value metrics. The fund’s ability to take advantage of price momentum helped to propel it to a top-performing position in 2022.
- YTD 2022 return: 79.17%
- Assets under management: $357.96M
- Expense ratio: 0.63%
- As of date: November 23, 2022
iShares U.S. Oil & Gas Exploration & Production ETF
The IShares U.S. Oil & Gas Exploration & Production ETF (IEO) tracks a market cap-weighted index of companies in the U.S. oil and gas exploration and production sector according to Dow Jones. Cap-weighted index funds can outperform the broader sector when an equal allocation reduces exposure to the largest holdings that may be underperforming.
- YTD 2022 return: 72.90%
- Assets under management: $1.26B
- Expense ratio: 0.39%
- As of date: November 23, 2022
Fidelity MSCI Index Energy Index ETF
The Fidelity MSCI Index Energy Index ETF (FENY) tracks a market-cap-weighted index of U.S. energy companies. The index includes those companies deemed investable by MSCI and covers 98% of the sector. FENY’s broad diversification within the energy space is a standout quality of the fund.
- YTD 2022 return: 71.58%
- Assets under management: $1.78B
- Expense ratio: 0.08%
- As of date: November 23, 2022
Energy Select Sector SPDR Fund
The Energy Select Sector SPDR Fund (XLE) tracks a market-cap-weighted index of U.S. energy companies in the S&P 500 across all energy sub-sectors. XLE is the largest energy sector ETF on the market.
- YTD 2022 return: 71.31%
- Assets under management: $44.31B
- Expense ratio: 0.10%
- As of date: November 23, 2022
Vanguard Energy ETF
The Vanguard Energy ETF (VDE) tracks a market-cap-weighted index of US energy companies. The index includes those companies deemed investable by MSCI and covers 98% of the market. Since VDE is cap-weighted, shareholders receive the heaviest exposure to the largest energy companies.
- YTD 2022 return: 71.21%
- Assets under management: $9.14B
- Expense ratio: 0.10%
- As of date: November 23, 2022
iShares U.S. Energy ETF
The iShares U.S. Energy ETF (IYE) tracks a market-cap-weighted index of large-cap US companies in the energy industry. Opening to new investors in June of 2000, IYE is one of the oldest energy ETFs on the market.
- YTD 2022 return: 69.01%
- Assets under management: $2.43B
- Expense ratio: 0.39%
- As of date: November 23, 2022
Invesco S&P 500 Equal Weight Energy ETF
The Invesco S&P 500 Equal Weight Energy ETF (RYE) tracks an equal-weighted index of US energy companies in the S&P 500. This means that RYE focuses on growth and value stocks within the U.S. large-cap space.
- YTD 2022 return: 66.07%
- Assets under management: $632.15
- Expense ratio: 0.40%
- As of date: November 23, 2022
SPDR S&P Oil & Gas Exploration & Production ETF
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) tracks an equal-weighted index of companies in the US oil & gas exploration & production space. XOP invests in growth and value stocks of companies across a range of market capitalization.
- YTD 2022 return: 64.22%
- Assets under management: $4.73B
- Expense ratio: 0.35%
- As of date: November 23, 2022
VanEck Oil Services ETF
The VanEck Oil Services ETF (OIH) tracks a market-cap-weighted index of 25 of the largest US-listed, publicly traded oil services companies. This narrow exposure can produce outsized returns when the largest companies are performing well; however, downside risk can also be pronounced.
- YTD 2022 return: 61.79%
- Assets under management: $2.70B
- Expense ratio: 0.35%
- As of date: November 23, 2022
Bottom Line
The best-performing ETFs of 2022 have primarily consisted of energy sector funds, more specifically in the oil and gas exploration and production energy sub-sector. Investors should keep in mind that past performance is no guarantee of future returns, and the top-performing ETFs of 2022 may not continue to outperform going forward into 2023.
