Investing in high-risk areas like clinical-stage biotechnology, micro-cap stocks, and junior gold mining can be made more accessible through targeted exchange-traded funds (ETFs). Notable options include the Virtus LifeSci Biotech Clinical Trials ETF (NYSEARCA: BBC), which has surged by approximately 38% year-to-date (YTD) as it focuses on 135 biotech firms, primarily small-cap. However, investors should be cautious due to a high annual fee of 0.65% and low assets under management.
The iShares Micro-Cap ETF (NYSEARCA: IWC) also targets a highly volatile domain, including almost 1,350 companies and returning 24% YTD. Over half of its portfolio consists of healthcare and financial stocks, but the fund comes with a 0.60% fee. Lastly, the VanEck Junior Gold Miners ETF (NYSEARCA: GDXJ) showcases 117 small gold mining companies and has gained 13% YTD with a 2.1% dividend yield, though it has high allocations to a few key names, moderating exposure risk.
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