Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the auto industry to thrive over time as our global economy recovers and starts growing more briskly, the Global X Auto ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The auto ETF's expense ratio -- its annual fee -- is 0.65%, which is a bit higher than many ETFs, but also considerably lower than the typical stock mutual fund.
This ETF is so young that it hardly has a performance to evaluate. It's very small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices.
What's in it?
Within the auto industry, several stocks have performed fairly strongly over the past year. Replacement-parts maker Genuine Parts
Other companies didn't do as well but could improve in the years to come. Ford
India's Tata Motors
The big picture
Demand for vehicles 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.