Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the real estate sector to improve as the global economy rebounds, the Vanguard REIT Index
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard REIT ETF's expense ratio -- its annual fee -- is an ultra-low 0.13%.
This ETF has outperformed the S&P 500 over the past one, three, and five years. Of course, as with most investments, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver. With a low turnover rate of 12%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do. It also sports an attractive 3.3% yield.
What's in it?
Several of this ETF's components made strong contributions to its performance over the past year. General Growth Properties
Other companies didn't add as much to the ETF's returns in the past year, but could have an effect in the years to come. Realty Income
The big picture
Demand for health care will likely always be with us. A well-chosen ETF can grant you instant diversification across the industry -- and make investing in and profiting from the sector that much easier.
ETFs can help you find the way to better investing results. To find some great ETF investing ideas, take a look at The Motley Fool's special free report, " 3 ETFs Set to Soar During the Recovery ."