Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to invest in a wide range of large-cap companies, it's hard to beat an S&P 500 index fund. But most of them weight their holdings by market cap, giving extra influence to the biggest companies. Instead, consider the Guggenheim S&P 500 Equal Weight ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Guggenheim ETF's expense ratio -- its annual fee -- is a relatively low 0.40%.
This ETF has performed rather well, beating the S&P 500 (as measured in its conventional, market-cap-weighted manner) 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.
What's in it?
Plenty of large-cap companies had strong performances over the past year. Few have fared better than Apple
Paint giant Sherwin-Williams
Other companies didn't do as well last year, but could see their fortunes change in the coming years. U.S. Steel
Finally, Cliffs Natural Resources
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.
Learn about four ETFs you can count on. And if you're intrigued by steel but not as enchanted as you'd like to be with U.S. Steel, learn about three stocks that will help you retire rich -- one of them is an innovative steel company.