Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you believe in the power of dividends to turbocharge your portfolio, the SPDR S&P Dividend ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR S&P Dividend ETF's expense ratio -- its annual fee -- is a low 0.35%. Its dividend yield was recently 3.2%.
This ETF has performed reasonably, but it's also a bit young, with just five years on the books. Still, its five-year average beats the overall S&P 500 index. 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. With a somewhat low turnover rate of 44%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several of this ETF's components made strong contributions to its performance over the past year. Telecom concern CenturyLink
Other companies didn't add much to the ETF's returns last year, but could have an effect in the years to come. Pitney Bowes
The big picture
A well-chosen ETF can grant you instant diversification across the investment categories that interest you.
Keep your eye on these investments by adding them to your watchlist:
- Add SPDR S&P Dividend ETF to My Watchlist.
- Add CenturyLink to My Watchlist.
- Add Genuine Parts to My Watchlist.
- Add Consolidated Edison to My Watchlist.
- Add Pitney-Bowes to My Watchlist.
ETFs can help you find the way to better investing results. To find some great ETF investing ideas, take a look at The Motley Fool's special free report, " 3 ETFs Set to Soar During the Recovery ."
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Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article. FedEx is a Motley Fool Stock Advisor recommendation, and the Fool owns shares of it and United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is Fools writing for Fools.