Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the real estate industry to thrive over time, the SPDR Dow Jones REIT ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF's expense ratio -- its annual fee -- is a low 0.25%.
This ETF has performed rather well, beating its benchmark over the past three, five, and 10 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 a low turnover rate of 10%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of REITS had strong performances over the past year. HCP
Health Care REIT
General Growth Properties
The big picture
Long-term demand for real estate 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.
REITs typically offer hefty dividend yields. If you'd like to review some non-REIT stocks that also offer great dividends, as well as a good chance of stock-price appreciation, check out our special free report "Secure Your Future With 9 Rock-Solid Dividend Stocks."