Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect natural resources and commodities businesses to thrive, the SPDR S&P Global Natural Resources
ETFs often sport lower expense ratios than their mutual fund cousins. The natural resources ETF's expense ratio -- its annual fee -- is a fairly low 0.40%.
This ETF doesn't have much of a track record yet, as it's not even a year old. Year-to-date, it's underperforming the S&P 500, but such a short time frame is close to meaningless. 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.
What's in it?
Several of this ETF's component stocks have likely made strong contributions to its performance. PotashCorp
Other companies likely haven't added as much to the ETF's returns, but could have an effect in the years to come. Seed giant Monsanto
The big picture
Demand for natural resources and commodities isn't going away anytime soon. A well-chosen ETF can grant you instant diversification across these companies -- and make investing in and profiting from the sectors that much easier.
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 ."Longtime Fool contributor Selena Maranjian does not own shares of any companies mentioned in this article. Motley Fool Options has recommended a synthetic long position on Monsanto. 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 has a disclosure policy.