Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the information technology (IT) industry to prosper over the long term as our world's technological needs grow and innovations continue, the Vanguard Information Technology ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard ETF's expense ratio -- its annual fee -- is a very low 0.19%. (Vanguard is known for low fees.)
This ETF has performed rather well, beating the world markets handily 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 a very low turnover rate of 6%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several IT companies had strong performances over the past year. Intel
Broadcom
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Corning
Cognizant Technology Solutions
The big picture
Demand for information technology products and services 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.
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