Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the utility industry to thrive as our world continues demand more and more energy, the Utilities Sector SPDR ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The utilities ETF's expense ratio -- its annual fee -- is a low 0.20%.
This ETF has performed rather well, beating the S&P 500, on average, over the past three, five, and 10 year periods. 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 11%, 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. Duke Energy
Other companies didn't add quite as much to the ETF's returns last year but could have an effect in the years to come. Natural gas and electricity concern PPL
The big picture
Demand for energy 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.