Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect emerging markets to thrive over time as their economies grow faster than ours, the SPDR S&P Emerging Markets ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF's expense ratio -- its annual fee -- is a relatively low 0.59%. That's a bit higher than many ETFs, but also considerably lower than the typical stock mutual fund. The ETF 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 has performed rather well, outperforming its benchmark 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 an ultra-low turnover rate of 4%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of companies based in emerging markets had strong performances over the past year. Taiwan Semiconductor
China-based search engine giant Baidu
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Brazil-based oil and gas giant Petroleo Brasileiro
Brazil-based metals specialist Vale
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 Apple, 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 Apple. Motley Fool newsletter services have recommended buying shares of Baidu, Apple, and Petroleo Brasileiro, as well as creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.