Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect companies offering consumer discretionary goods and services to do well as the global economy improves and consumers are able to spend more, the Vanguard Consumer Discretionary ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard ETF's expense ratio -- its annual fee -- is a relatively low 0.19%. (Vanguard is known for very low fees.)
This ETF has performed reasonably 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 very low turnover rate of 7%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of consumer discretionary companies had strong performances over the past year. Priceline.com
Las Vegas Sands
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Ford
Meanwhile, Johnson Controls
The big picture
Demand for discretionary products may fluctuate, but it's not 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 Ford Motor, 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 priceline.com and Ford Motor. Motley Fool newsletter services have recommended creating a synthetic long position in Ford Motor. The Motley Fool has a disclosure policy.