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.
Longtime Fool contributor Selena Maranjian owns shares of Ford, but she holds no other position in any company mentioned. Check out her holdings and a short bio. The Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of General Motors and Ford, as well as creating a synthetic long position in Ford. 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.