Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the world's consumer products industry to thrive as the global economy recovers and develops and rising incomes permit more purchases, the iShares S&P Global Consumer Staples ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF's expense ratio -- its annual fee -- is a relatively low 0.48%.
This ETF has performed reasonably, beating the S&P 500 handily over the past three 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. Domestic tobacco giant Altria
Drugstore giant Walgreen
Other companies didn't add as much to the ETF's returns last year but could have an effect in the years to come. PepsiCo
The big picture
Demand for consumer staples, by definition, isn't going away anytime soon. A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it 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 PepsiCo and Procter & Gamble, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of Altria, Philip Morris International, and PepsiCo. Motley Fool newsletter services have recommended buying shares of Procter & Gamble, PepsiCo, and Philip Morris International, as well as creating a diagonal call position in PepsiCo. 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.
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