Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect seemingly undervalued large-cap companies to prosper as their intrinsic value is eventually realized and as they grow even bigger over time, then the First Trust Large Cap Value AlphaDEX ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The First Trust ETF's expense ratio -- its annual fee -- is 0.70%, which is a bit higher than many ETFs, but still lower than the typical stock mutual fund.
This ETF has performed reasonably well, beating the S&P 500, on average, 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.
What's in it?
Several of this ETF's components made strong contributions to its performance over the past year. Intel
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. Xerox
Glass and fiber giant Corning
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 and Corning, 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 Weyerhaeuser and Intel and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of Corning and Intel, as well as creating a bull call spread position in Intel. 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.