High-risk, high-reward corners of the market may feel off-limits to more cautious investors, but these areas may become more approachable with specific exchange-traded funds (ETFs) that help mitigate risk. Clinical-stage biotech names, micro-cap stocks, and junior gold mining companies are among the firms that may entice investors looking to make such a wager.
It may be a comparably good time to consider investing in a fund focused on one of these areas. Biotech names have been buoyed by healthy M&A activity and some notable clinical successes across the industry this summer, for instance, while momentum in certain niche sectors and a rotation away from mega-cap names has benefited some micro-caps. The funds below may offer exposure to these compelling corners of the market that also carry a healthy level of risk for investors.
