Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect Internet-related companies to keep growing briskly over the coming years, the Dow Jones Internet Index ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Internet Index ETF's expense ratio -- its annual fee -- is 0.60%, which is a bit higher than many ETFs, but also considerably lower than the typical stock mutual fund.
This ETF has performed rather well, outperforming the S&P 500, on average, over the past three and five years. 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 18%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of Internet-related companies had strong performances over the past year. Akamai Technologies
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Netflix
The big picture
Demand for Internet services 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, owns shares of Netflix, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Netflix and priceline.com. The Motley Fool has a disclosure policy.