Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect strong dividend-paying stocks to rise in value over time while kicking out income to investors, the brand-new Schwab U.S. Dividend Equity ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Schwab ETF's expense ratio -- its annual fee -- is a very low 0.17%. It's also a good reason to consider this ETF versus other dividend-focused ETFs, despite its young age and small current size.
This ETF has little performance to speak of so far, but a look at its components reveals plenty of stocks that have fared reasonably well in recent years, considering our difficult economic conditions. 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.
What's in it?
Several of this ETF's components have done well over the past year and may contribute to the ETF's performance in the coming year. Caterpillar
Other companies didn't do as well in the past year but could add to the ETF's returns in the years to come. Boeing
The big picture
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.
Longtime Fool contributor Selena Maranjian owns shares of Intel, but she holds no other position in any company mentioned. Check out her holdings and a short bio. The Motley Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position on Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.