Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you want to add a bunch of companies experiencing significant growth to your portfolio, the Vanguard Growth ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard ETF's expense ratio -- its annual fee -- is an ultra-low 0.12%. (Vanguard is known for very low fees.)
This ETF has performed rather well, beating the S&P 500, on average, over the past three- and five-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 23%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of growth companies had strong performances over the past year. Apple
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Other companies didn't do as well last year but could see their fortunes change in years to come. Boeing
Meanwhile, Caterpillar
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.
Learn about the 5 ETFs That Could Soar in 2012. And if you're looking for some great investments beyond ETFs, consider these 12 Dividend Stocks for 2012.