Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect undervalued stocks to grow, approaching or exceeding their intrinsic worth, the Vanguard Value ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard ETF's expense ratio -- its annual fee -- is a very low 0.12%, which is typical of Vanguard funds.
This ETF hasn't performed as well as many would hope, trailing the S&P 500 and the typical large-value fund over the past five years. 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 27%, 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. Tobacco giant Altria
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. Freeport McMoRan Copper & Gold
The big picture
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.