Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect real estate investments to thrive as the global economy recovers, the SPDR Dow Jones REIT ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Dow Jones REIT ETF's expense ratio -- its annual fee -- is a low 0.25%.
This ETF has performed rather well, outperforming the S&P 500 handily over the past three and 10 years (but missing that mark a bit over the past five). As with most investments, of course, 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 10%, 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. Health Care REIT
Other companies didn't add quite as much to the ETF's returns last year, but could have an effect in the years to come. HCP
The big picture
Demand for real estate 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 holds no position in any company mentioned. Click here to see her holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Health Care REIT. 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.