Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the world's economies to recover in the coming years and consumers to loosen their purse strings for discretionary purchases, the Consumer Discretionary Select Sector SPDR ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF's expense ratio -- its annual fee -- is a very low 0.18%.
This ETF has performed rather well, topping the world market 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 7%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
More than a handful of consumer-discretionary companies had strong performances over the past year. Carnival Cruise Lines
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Ford
The big picture
Demand for discretionary goods and services may be cyclical, but it isn't likely to go 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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