Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the gambling industry (or "gaming industry," as it likes to call itself) to thrive as more casinos are built around the world and people continue to take risky chances with their money, the Market Vectors Gaming ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The gaming ETF's expense ratio -- its annual fee -- is 0.65%. The fund is fairly 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 has performed reasonably, but it's also very young, with just a few years on the books. It outperformed the S&P 500, on average, 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 19%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Various gaming companies had strong performances over the past year. Melco Crown
Other companies didn't do as well last year, but they could see their fortunes change in the coming years. Wynn Resorts
The big picture
Demand for gambling opportunities and venues 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, whom you can follow on Twitter here, holds no position in any company mentioned. Click hereto 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.