Building a High-Efficiency Portfolio: Three ETFs Delivering Outsized Returns Without Breaking the Bank

In the current investment landscape, finding exchange-traded funds that combine low expense ratios with exceptional performance remains a persistent challenge for portfolio managers. While diversification through ETFs is increasingly popular, the market demands that winning funds satisfy two critical criteria: demonstrable performance metrics and cost structures that don’t erode returns. As 2025 draws to a close, a handful of strategically positioned funds stand out for delivering 67% or higher year-to-date gains while maintaining annual fees below 0.60%—a rare combination that warrants closer examination.

Capitalizing on the Clean Tech Boom: Rare Earth Metals Leadership

The [VanEck Rare Earth and Strategic Metals ETF (REMX)]( has emerged as a compelling play on supply chain diversification in the technology sector. REMX tracks companies engaged in the production, refinement, and recycling of critical materials including titanium, molybdenum, and rare earth elements—the invisible backbone of modern electronics, renewable energy systems, and battery technology.

The fund’s 73% year-to-date performance reflects both the rising demand for these materials and the geopolitical complexities surrounding their sourcing. China’s dominant position in global rare earth production creates pricing volatility and adds an element of uncertainty, particularly amid ongoing trade tensions. Additionally, government spending on defense and infrastructure amplifies demand fluctuations.

While this volatility presents risk, it also generates opportunity. REMX’s concentrated portfolio of approximately 24 holdings captures substantial exposure to the sector while maintaining an expense ratio of just 0.58%—a competitive cost for a specialized strategy. For investors comfortable with higher volatility, this represents genuine value in accessing a niche but increasingly vital market segment.

Nuclear Energy’s Coming Decade: Positioning for Long-Term Growth

The [VanEck Uranium and Nuclear Energy ETF (NLR)]( takes a different approach to emerging energy transitions. Industry analysts project nuclear power’s share of the global energy mix will expand to 12% by 2040, driven by climate concerns, grid reliability demands, and technological improvements in reactor design.

NLR provides comprehensive sector exposure through a diversified portfolio that encompasses upstream uranium producers, equipment manufacturers, and utility operators. With 26 holdings spanning developed markets across North America, Europe, and Asia-Pacific, the fund captures the entire value chain while benefiting from varied regulatory environments and economic cycles.

Although nuclear energy remains a specialized investment category, NLR’s 0.56% expense ratio positions it favorably relative to comparable offerings. Many competing funds carry higher fees or suffer from thin trading volumes that can disadvantage active traders. NLR balances cost efficiency with adequate liquidity, making it accessible for most investors. The fund’s year-to-date return of 73% reflects strengthening momentum as governments worldwide recommit to nuclear as a decarbonization tool.

Blockchain Without Direct Crypto Exposure: The Diversified Alternative

For investors seeking cryptocurrency sector participation without holding tokens directly, the [Schwab Crypto Thematic ETF (STCE)]( offers an indirect approach through the companies enabling blockchain adoption. Rather than tracking Bitcoin or other digital assets, STCE focuses on mining firms, exchange operators, hardware manufacturers, and blockchain infrastructure providers.

The fund’s 36-position portfolio includes companies across multiple geographies, though nearly 81% is U.S.-denominated with secondary exposure to Canadian firms. This geographic concentration reflects where much of the developed-world crypto infrastructure clusters. Critically, STCE maintains diversification across market capitalizations, avoiding overconcentration in mega-cap players while capturing exposure to mid-sized and smaller emerging competitors.

STCE’s 0.30% expense ratio substantially undercuts alternative vehicles like the [Grayscale Bitcoin Trust (GBTC)]( which charges fees five times higher. Despite this cost advantage and its 76% year-to-date return during the recent crypto market rally, trading volume remains moderate (averaging below 100,000 shares monthly), which may pose occasional liquidity considerations for larger positions.

The Investment Case: Cost Efficiency Meets Growth Potential

The common thread across these three funds is their achievement of strong double-digit returns while maintaining disciplined cost structures. In an environment where expense ratios can meaningfully erode long-term wealth accumulation, these vehicles demonstrate that specialized sector exposure doesn’t necessarily command premium fees.

Each fund targets distinct secular trends—material scarcity in clean technology, energy transition acceleration, and blockchain infrastructure expansion—ensuring portfolio diversification benefits even within a niche thematic strategy. For investors building allocation frameworks around emerging themes while mindful of costs, this triad represents a compelling toolkit as markets continue evolving through 2025 and beyond.