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.