Exchange-traded funds (ETFs) have been around for about 30 years, offering investors a variety of advantages such as diversification and simplicity of trading.
As a result, we’ve compiled a list of the best three performing non-leveraged exchange-traded funds that have produced over a 25% return on investment (ROI) so far in 2022.
1. VanEck Oil Services ETF (NYSEARCA: OIH) delivered 28% ROI YTD
In order to achieve the best possible price and yield performance, the VanEck Oil Services (NYSEARCA: OIH) ETF tries to replicate as closely as possible, before fees and costs, the price and yield performance of the Market Vectors U.S. Listed Oil Services 25 Index.
The MVIS U.S. Listed Oil Services 25 Index (MVOIHTR) is the benchmark against which the fund tries to match price and yield performance which is designed to follow the overall performance of U.S.-listed firms that provide services to the upstream oil industry, such as oil equipment, oil services, and oil drilling made up of common stocks and depository receipts of oil services businesses that are publicly traded.
Currently, OIH is trading at $2,651.21, it is up +2.20 (0.94%) today and +11.91 (5.30%) over the past 5 days. Year-to-date (YTD) VanEck Oil Services ETF is up 28% and the long and short-term trends are both positive.
In the last month, OIH has been trading in the range between $201.96 – $239.76 range and is currently trading near the high of this range.
Notably, OIH is trading well above its 20, 50, and 200-day simple moving averages (SMA), typically utilized by stock investors as uptrend indications.
As a result of its recent performance and a price 11.67% above its 20-day SMA, it appears that the firm’s short-term positive momentum might push it bullish.
2. Short De-Spac ETF (NASDAQ: SOGU) delivered 25.8% ROI YTD
The investment intends to provide investment returns that are essentially inverse of the De-SPAC Index’s price and yield performance.
Prior to fees and expenditures, the De-SPAC Index’s price and yield performance will be inversely correlated to the performance of the Fund. In all, twenty-five of the world’s top firms by market capitalization have executed corporate mergers and acquisitions using Special Purpose Acquisition Companies, making up the Short De-Spac ETF (NASDAQ: SOGU) index.
Short De-Spac ETF is currently trading at $37.90 -$0.10 (-0.26%) over the past five days but is up 25.8% YTD. The technical picture looks positive in both the medium and short-term time frames highlighted by the 20 and 50-day SMA lines. Notably, SOGU is up 14.2% above its 20-day SMA and 60.75% over its 50-SMA line, suggesting that short-term momentum is bullish.
SOGU has been trading in a range of $32.20 – $48.43 over the last month, and it is presently trading in the center of this range, indicating that traders may find some resistance above the current price.
Support areas can be observed a $37.38 from a horizontal line in the daily time frame, while support at $24.88 from a trend line in the daily time frame is also noticeable.
3. Energy Select Sector SPDR Fund (NYSEARCA: XLE) delivered 25.73% ROI YTD
Energy Select Sector SPDR Fund (NYSEARCA: XLE) provides liquid exposure to a market-like basket of energy companies in the United States. The fund has concentrated exposure to the industry’s giants, which include firms involved in the oil, gas, and consumable fuels sectors, as well as the energy equipment and services industries, as defined by the Global Industry Classification Standard (GICS).
Since XLE monitors a market-cap-weighted index of U.S. energy companies in the S&P 500 rather than the whole market, its portfolio is dominated by large-capitalization companies. Holdings are weighted according to market capitalization and are subject to a capping approach that guarantees that no one security accounts for more than 25% of total holdings at each quarterly rebalance.
XLE has shown consistent performance throughout a range of time periods, both short and long term, and when compared to the general market, the fund has demonstrated a solid and stable performance.
A new 52-week high is now being set by the Energy Select Sector SPDR Fund, which is a very bullish indicator, particularly considering that the S&P 500 is only trading in the upper portion of its 52-week range, meaning that XLE is currently leading the market.
The fund has been trading in a range of $59.84 – $70.43 for the past month, and it is presently trading towards the peak of this region, while YTD it is up 25.73%.
Given that XLE is trading well above its 20, 50, and 200-day simple moving averages the short-term momentum is bullish.
Whatsmore, using the daily time frame, several trend lines, and significant moving averages, we can detect a support zone extending from $67.13 to $67.17 in our analysis.
Overall, the appealing tax efficiency, low cost, liquidity, and transparency of ETFs contribute to their growth and returns as investors seek alternatives to equities within the traditional stock market which has been marked by volatility and flirtations with a correction in recent weeks.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.