Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the leisure and entertainment arena to heat up as our global economy eventually improves and people are more eager to spend, the PowerShares Dynamic Leisure & Entertainment ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The PowerShares ETF's expense ratio -- its annual fee -- is 0.63% -- higher than many ETFs, but still considerably lower than the typical stock mutual fund.
This ETF has outperformed the S&P 500 over the past five years, although it underperformed the S&P SuperComp Hotels, Restaurants & Leisure Index. 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 leisure and entertainment stocks did well over the past year. Buffalo Wild Wings
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. Travelzoo
The big picture
Demand for leisure and recreation 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.