Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the biotech industry to thrive over time as our planet's population keeps growing, aging, and needing medical care, the iShares Nasdaq Biotechnology ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF's expense ratio -- its annual fee -- is a relatively low 0.48%.
This ETF has performed rather well, beating 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 19%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of biotech companies had strong performances over the past year. Amylin Pharmaceuticals
Cancer fighter Seattle Genetics
The big picture
Demand for better treatments for diseases 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.
Of course, biotech stocks can be very volatile. If you're like to build wealth with stocks that might help you sleep better, here are three solid stocks that can help you retire rich, then simply click here for access to our latest special report -- it's free!