Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the global natural resources industry to thrive over time as our developing world keeps demanding building materials and fuel, the WisdomTree Global Natural Resources Index ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The WisdomTree ETF's expense ratio -- its annual fee -- is 0.58%. The fund is fairly small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF has underperformed the world market over the past three and five years, but the future matters much more than the past. Also, as with most investments, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver. So, consider how bullish you are about global natural resources in general, and in particular the kinds of companies this ETF invests in.
What's in it?
More than a handful of global natural resources companies had strong performances over the past year. Southern Copper
U.K.-based giant BP
The big picture
Demand for global natural resources 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.
Interested in profiting from natural gas? Check out "The 1 Energy Stock You Must Own Before 2014," handpicked by our energy analysts for its stability, assets, and hefty dividend yield. All the information you need is available in our exclusive free report, so click here to claim your copy now at no cost.