Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to invest in large-cap companies that appear undervalued, the iShares S&P 500 Value Index ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The value ETF's expense ratio -- its annual fee -- is a very low 0.18%.
This ETF has slightly underperformed the S&P 500 over the past decade. That's not encouraging, but what matter most is future performance and whether you expect many stock prices to rise from this point on. 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 value stocks had strong performances over the past year. For example, Tobacco giant Altria
Cisco Systems
Other companies didn't do as well last year but could see their fortunes change in years to come. General Electric
Ford
The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies and make investing in it -- and profiting from it -- that much easier.
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