Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you're a fan of investing guru Louis Navellier and are interested in investing in the 100 stocks his quantitative system deems to be of the highest quality in the U.S. market, the RevenueShares Navellier Overall A-100 ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The RevenueShares ETF's expense ratio -- its annual fee -- is 0.60%. That's higher than that of many ETFs, but also considerably lower than that of most stock mutual funds. (The fund is also very tiny, so if you're thinking of buying, beware of large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.)
This ETF is too young to have a sufficient track record to assess. It outperformed the S&P 500 in 2010, and underperformed it in 2011. 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 steep turnover rate of 190%, this fund, like many of its mutual fund peers, isn't committing to its picks for very long. Low turnover rates can reflect more conviction.
What's in it?
Several Navellier-picked companies had strong performances over the past year. Melco Crown
Snowmobile and all-terrain vehicle maker Polaris Industries
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Green Mountain Coffee Roasters
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.