5 Best Performing Small-Cap ETFs in 2022

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.”