Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you like mid-cap companies because they've proven themselves enough to grow to a significant size and because they still have a lot of room for growth, the Focus Morningstar Mid Cap ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Morningstar ETF's expense ratio -- its annual fee -- is a very low 0.12%.
This ETF doesn't have much of a performance record yet, as it's less than a year old. It's relatively small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. Consider using a limit order if you want to buy in. 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 16%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several mid-cap stocks posted strong performance over the past year. Hard-drive specialist Seagate Technology
Up 23%, Health Care REIT
Other companies didn't perform as well last year, but could have an effect in the years to come. Weyerhaeuser
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.