Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect dividend-paying stocks to keep generating cash for shareholders over time (and increasing those payouts, too), the First Trust Morningstar Dividend Leaders ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The dividend ETF's expense ratio -- its annual fee -- is a relatively low 0.45%.
This ETF has a mixed performance record, lagging the S&P 500 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 30%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several stocks this ETF owns have seen strong performance over the past year. Abbott Labs
Southeastern utility specialist Southern
Other companies didn't do as well but could have better years in the future. Merck
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.