Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the health-care industry to thrive as our global population grows, ages, and needs medical attention, the iShares Dow Jones U.S. Health Care ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF's expense ratio -- its annual fee -- is a relatively low 0.47%.
This ETF has topped the S&P 500, on average, over the past five years, and just about matched it over the past 10. 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 very low turnover rate of 8%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several health-care stocks have done well in the past year. Robotic surgery equipment maker Intuitive Surgical
Biotech concern Alexion Pharmaceuticals
Other companies didn't do as well but could help boost the ETF's prospects in years to come. Merck
The big picture
Demand for health-care products and services 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.