Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the transportation industry to thrive as the world's economy gets back on track, the iShares Dow Jones Transportation Average
You won't be alone in your interest in transportation. Berkshire Hathaway's
ETFs often sport lower expense ratios than their mutual fund cousins. The Transportation ETF's expense ratio -- its annual fee -- is a relatively low 0.47%.
This ETF has performed reasonably well, outpacing the S&P 500 over the past three and five years. 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 low turnover rate of 12%, 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. CSX
Other holdings didn't exactly shine last year, with American Airlines parent AMR
The big picture
Demand for transportation won't go away anytime soon. A well-chosen ETF can grant you instant diversification across the industry -- and make investing in and profiting from the sector that much easier.
Keep your eye on these investments by adding them to your watchlist:
- Add iShares Dow Jones Transportation Average ETF to My Watchlist.
- Add Union Pacific to My Watchlist.
- Add CSX to My Watchlist.
- Add United Parcel Service to My Watchlist.
- Add American Airlines to My Watchlist.
- Add Delta Airlines 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 ."
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Longtime Fool contributor Selena Maranjian owns shares of Berkshire Hathaway. Berkshire Hathaway is a Motley Fool Inside Value pick and a Motley Fool Stock Advisor recommendation. The Fool owns shares of Berkshire Hathaway and United Parcel Service. Try any of our investing newsletter services free for 30 days. The Motley Fool is Fools writing for Fools.