5 Best Performing Leveraged ETFs in 2022

4. Direxion Daily Metals & Mining Bull 2X Shares (NYSEARCA:MNM)

Leverage: 2x

YTD Return as of December 9: 10.27%

The Direxion Daily Metal Miners Bull 2X Shares (NYSEARCA:MNM) has gained 10.27% year to date, as of December 9, and is one of the best performing leveraged ETFs in 2022. The fund has outperformed the S&P 500 by over 28% so far. The fund is designed to amplify the daily performance of the S&P Metals & Mining Select Industry Index by 2 times. The fund has an expense ratio of 1.07% and $12.39 million in assets under management.

The Direxion Daily Metal Miners Bull 2X Shares (NYSEARCA:MNM) has 38 holdings concentrated in the materials, energy, and industrials segments. The fund has a top ten holdings concentration of 47.87%. Freeport-McMoRan Inc. (NYSE:FCX) is one of the top holdings of the fund. As of December 9, Freeport-McMoRan Inc. (NYSE:FCX) has gained 3% over the past six months and is trading at a PE multiple of 14x.

On November 23, Deutsche Bank analyst Abhi Agarwal raised his price target on Freeport-McMoRan Inc. (NYSE:FCX) to $35 from $30 and reiterated a Hold rating on the shares.

As of September 30, Ken Fisher’s Fisher Asset Management is the largest investor in Freeport-McMoran Inc. (NYSE:FCX) and has disclosed a position worth $1.45 billion in the company.

Here is what ClearBridge Investments had to say about Freeport-McMoRan Inc. (NYSE:FCX) in its third-quarter 2022 investor letter:

“Seeing better opportunities elsewhere in the materials sector, we exited our position in Ecolab and added to copper producer Freeport-McMoRan Inc. (NYSE:FCX), which supplies a much-needed resource for the energy transition, and specialty chemical company Linde (LIN), which has historically held onto pricing gains it has achieved following increases in energy costs. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate. We think this pricing power should protect profitability during the acute inflationary phase and potentially lead to margin expansion when cost pressures abate.”