Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to focus some of your investing on value stocks that exhibit low book-value-to-price and sales-to-price ratios as well as dividend yields, the Rydex S&P 500 Pure Value ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Rydex ETF's expense ratio -- its annual fee -- is a relatively low 0.35%. It's relatively small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF doesn't have a long performance to assess, as it's rather young. It has, on average, topped the S&P 500 handily over the past three years. But, 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 low turnover rate of 23%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of value stocks have posted strong performances over the past year. Marathon Petroleum
Other companies didn't do as well last year, but could rebound in the years to come. Hudson City Bancorp
Hartford Financial Services
The big picture
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, whom you can follow on Twitter @SelenaMaranjian, holds no position in any company mentioned. Click here to see her holdings and a short bio. 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.