Four High Volatility ETFs Your Broker Forgot To Mention

Last month, we took a look at four ETFs specifically designed to limit volatility and turned up some interesting options. As a result of the ETF industry's rapid growth, ETF issuers are coming up with unique ideas and finding interesting niches to fill. One of those niches has been funds that specialize in high or low volatility. To be clear, and this was the case with our look at the low volatility funds, we are not looking at sector-specific ETFs. Most investors know that if they want a low volatility sector ETF, they can head to telecom or utilities funds and high volatility plays can be found in the energy and materials sectors, just to a name a pair. Without further ado, here are four high volatility ETFs your broker forgot to mention. PowerShares S&P 500 High Beta ETF SPHB: As we noted last month, one of the better new ETFs of 2011 has been the PowerShares S&P 500 Low Volatility Portfolio SPLV. Well, SPLV has a cousin and its SPHB. Like SPVL, SPHB has an expense ratio of 0.25% and does exactly the opposite of the low volatility fund. SPHB holds 100 S&P 500 stocks that have shown the highest beta over the past year. In a testament to the risk off trade, SPHB has just $11.2 million in assets under management compared to over $432 million for its lower volatility friend. Russell 1000 High Volatility ETF HVOL: And as we noted last month, Russell Investments has become one of the top purveyors of beta/volatility-focused ETFs, offering investors an array of funds at both the high and low end of the volatility spectrum. One of the high volatility options is the Russell 1000 High Volatility ETF, which made its debut in late May and has thus far garnered over $4.2 million in AUM. Home to 111 stocks, HVOL's top sector weights aren't surprises: Finanicials and energy. Top-10 holdings include Schlumberger SLB, Halliburton HAL and American Express AXP. Russell 2000 High Volatility ETF SHVY: SHVY is the small-cap equivalent of HVOL, but SHVY's expense ratio is higher at 0.69% compared to 0.49% for SHVY. Still, SHVY has drawn in $7.7 million in AUM in what has been a tricky environment for small-caps over the past six months. SHVY is home to almost 380 stocks and features large weights to financials, technology, consumer discretionary and health care names. Russell 1000 High Beta ETF HBTA: HBTA features the same expense ratio as HVOL , fewer holdings (98), but more AUM ($12.7 million). The Russell 1000 High Beta ETF is also a bit more conservative in its posture than HVOL, though not by much. Top-10 holdings include Halliburton, Caterpillar CAT, Deere DE and Apple AAPL. Bull case: Obviously all of these funds need the risk on trade to come back on in a big way. The more risk is embraced, the more these ETFs thrive. Bear case: The exact opposite of the bull case. If investors run to cash and bonds, these aren't the ETFs you'll want to be around.