Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the housing industry to eventually recover as the housing market works through its extra inventory of homes and our global economy eventually recovers, the SPDR Homebuilders ETF
ETFs often sport lower expense ratios than their mutual fund cousins. This homebuilding ETF's expense ratio -- its annual fee -- is a rather low 0.35%.
This ETF has performed...well...poorly, but that's largely due to the housing market cratering over the past several years. That won't last forever. And 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 a low turnover rate of 38%, 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. You might not think of mattress specialist Select Comfort
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. These include more of the usual suspects you'd expect in a homebuilding ETF, such as PulteGroup
Gypsum and wallboard concern USG
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.