Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect contrarian stock picks to perform well over time, as they reflect out-of-favor companies with under-appreciated prospects, the Russell Contrarian ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The contrarian ETF's expense ratio -- its annual fee -- is a relatively low 0.37%.
This ETF doesn't have much of a performance record yet, as it's less than a year old. It's extremely small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. You might want to just keep an eye on it as it matures a bit, or you might want to be an early investor. Remember that as with most investments, 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?
Most of the stocks in this ETF haven't shown strong gains over the past year -- which reflects their status as contrarian picks. Hewlett-Packard
The big picture
Contrarian investing has paid off handsomely for many investors. 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 Apple, 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 Berkshire Hathaway and Apple. Motley Fool newsletter services have recommended buying shares of Berkshire Hathaway and Apple, as well as creating a bull call spread position on Apple. 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.