Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the biotech industry to thrive as scientists develop more drugs to treat our aging population, the iShares Nasdaq Biotechnology ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The biotech ETF's expense ratio -- its annual fee -- is a relatively low 0.48%.
This ETF has a bit of a mixed performance record, slightly behind the S&P 500
With a low turnover rate of 13%, 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. Seattle Genetics
Vertex Pharmaceuticals
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. Teva Pharmaceutical
The big picture
Demand for new medicines 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.
Learn about the best dividend ETFs. And if you're looking for some great investments beyond ETFs, consider these 10 stocks for your retirement portfolio.