Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the metals and mining industry to thrive as the global economy recovers and infrastructure and manufacturing work picks up, the SPDR S&P Metals & Mining ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF's expense ratio -- its annual fee -- is a relatively low 0.35%.
This ETF has not performed wonderfully, lagging the world market over the past three and five years. It's the future that counts the most, though, and the past few years have been tough ones for the global economy. 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.
What's in it?
Few metals and mining companies had strong performances over the past year, as the global economic recovery is not yet in full swing.
Freeport-McMoRan Copper & Gold
Then there's Titanium Metals
The big picture
Demand for metals and mining 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.
If industrial stocks interest you, check out our special free report, "The Future Is Made in America," which details a new technology that might shift the "Made in China" trend toward the U.S. instead.