Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the medical equipment industry to thrive as the world's population grows and ages, the SPDR S&P Health Care Equipment
ETFs often sport lower expense ratios than their mutual fund cousins. The health-care equipment ETF's expense ratio -- its annual fee -- is a low 0.35%.
This ETF is new, having started in late January, so there isn't much of a track record to assess yet. It's encouraging that its peer, the iShares Dow Jones US Medical Devices
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 25%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several of this ETF's components have the promise to make strong contributions to its performance in the future. Intuitive Surgical
Spun off from Baxter International
The big picture
Demand for medical devices isn't going 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.
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 owns shares of Intuitive Surgical, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Intuitive Surgical. 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.