Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect technology-oriented companies to thrive over time due to innovations and demands for increased efficiency, the iShares Dow Jones US Technology ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF's expense ratio -- its annual fee -- is a relatively low 0.47%.
This ETF has performed reasonably, beating the S&P 500 over the past five years, but lagging it a bit over the past 10. 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 very low turnover rate of 8%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
As you'd expect, some growing tech stocks did well for the ETF recently. Intel
Other companies haven't done as well lately but have plenty of future promise. Glass giant Corning
The big picture
Demand for technology 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 QUALCOMM, 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 QUALCOMM, Intel, Corning, and Cisco Systems, as well as having bought calls on Intel and created a bull call spread position on Cisco Systems. Motley Fool newsletter services have recommended buying shares of Cisco Systems, Corning, and Intel, along with 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.