Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the brokerage and money management industries to prosper as our global economies and stock markets eventually pick up, the iShares Dow Jones US Broker-Dealers ETF
This ETF has not delivered the most impressive performance so far, but it's also very young, with just a few years on the books. It underperformed the S&P 500, on average, over the past three and five years, but these have been years in which the stock market has stalled or sputtered. If you expect the stock market to heat up, brokerages and financial services companies will likely see business improve significantly.
With a low turnover rate of 32%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several broker-dealer stocks performed strongly over the past year. Fixed-income trading platform provider MarketAxess
Other companies didn't do as well but could improve in the years to come. E*TRADE Financial
The big picture
Demand for brokerages and financial services isn't going away anytime soon. A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it that much easier.
Remember, too, that even if you don't want to invest in some strong brokerages, you can invest through a great brokerage. Learn more about how to choose the best one for you in our nifty Broker Center.