Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the networking industry to thrive as it keeps growing and taking on more work, the iShares S&P North American Tech-Multimedia Networking ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The networking ETF's expense ratio -- its annual fee -- is a relatively low 0.48%.
This ETF has not performed spectacularly over the past 10 years compared to the S&P 500, but its future matters more. If you're bearish on networking's prospects, steer clear. But if you're bullish, consider this ETF; the market's recent deep swoon leaves most of its components priced more attractively than before. As with most investments, of course, 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 25%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several of this ETF's components made strong contributions to its performance over the past year. InterDigital Communications
Other companies didn't add as much to the ETF's returns last year, but they could have an effect in the years to come. JDS Uniphase
The big picture
Demand for networking capacity and performance won't go anytime soon. 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 ."