Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect emerging markets to thrive over time as their economies grow faster than ours, the SPDR S&P Emerging Markets ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF's expense ratio -- its annual fee -- is a relatively low 0.59%. That's a bit higher than many ETFs, but also considerably lower than the typical stock mutual fund. The ETF is rather 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.
This ETF has performed rather well, outperforming its benchmark over the past three and 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 an ultra-low turnover rate of 4%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of companies based in emerging markets had strong performances over the past year. Taiwan Semiconductor
China-based search engine giant Baidu
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Brazil-based oil and gas giant Petroleo Brasileiro
Brazil-based metals specialist Vale
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 4 ETFs You Can Count On. And if you're looking for some great investments beyond ETFs, consider these 5 Stocks Growing Their Dividends by 20% Per Year.