Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the health-care industry to survive and thrive despite the market's recent swoon, the Health Care Select Sector SPDR ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The health-care ETF's expense ratio -- its annual fee -- is a very low 0.20%.
This ETF has performed reasonably well, outpacing the S&P 500 over the past three, five, and 10 years. 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 an ultra-low turnover rate of 4%, 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. HIV specialist Gilead Sciences
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. Amgen
The big picture
Demand for health care 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 its companies 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 ."