Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to load up your portfolio with dividend-paying stocks in order to create an income stream for yourself, the Russell Equity Income ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Russell ETF's expense ratio -- its annual fee -- is a relatively low 0.37%. The fund is rather 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 is too young to have a sufficient track record to assess. 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.
What's in it?
Plenty of dividend-paying companies have delivered strong performances over the past year. Intel
Other companies didn't do as well last year, but could see their fortunes change in the coming years. General Electric
Database software giant Oracle
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, owns shares of QUALCOMM, Apple, and Intel, 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 QUALCOMM, Oracle, Intel, and Apple. Motley Fool newsletter services have recommended buying shares of Intel. The Motley Fool has a disclosure policy.