Venture Into High-Volatility Corners of the Market With These 3 ETFs

For investors seeking exposure to high-risk, high-reward sectors, three exchange-traded funds (ETFs) stand out. The Virtus LifeSci Biotech Clinical Trials ETF (BBC) has surged 38% year to date, targeting clinical-stage biotech companies in the drug discovery process. With a high 0.65% fee and low liquidity due to its small size, BBC may offer significant potential but comes with considerable risk.

The iShares Micro-Cap ETF (IWC) has gained 24% YTD by investing in a diverse group of small and volatile firms, with a focus on healthcare and financials. Despite a 0.60% fee, IWC provides broad sector exposure and has rewarded investors who are willing to take on risk. Lastly, the VanEck Junior Gold Miners ETF (GDXJ) has returned 13% YTD, offering a dividend yield of 2.1%, and investing in 117 small gold mining companies.

GDXJ's performance may be bolstered by a few prominent gold mining firms, but its high allocations to these names could limit exposure to smaller, speculative players. These ETFs present opportunities for investors seeking to venture into high-volatility corners of the market, albeit with varying levels of risk and complexity.