Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect industrial companies to start doing well again once the global economy starts heating up, the Vanguard Industrials ETF
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 market over the past three and five years -- which represent a tough environment. 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 5%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Some industrial companies had strong performances over the past year. General Electric
Other companies didn't do as well last year, but they could see their fortunes change in the coming years. Railroad company CSX
Engine maker Cummins
The big picture
Long-term demand for industrial goods 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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