Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add growing small-cap stocks to your portfolio because of their ability to grow rapidly, the iShares S&P Small Cap 600 Growth ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The small-cap ETF's expense ratio -- its annual fee -- is a relatively low 0.25%.
This ETF has a strong performance record, beating the S&P 500 over the past three, five, and 10 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 small-cap companies had strong performances over the past year. Questcor Pharmaceuticals
Cirrus Logic
Satellite and wireless specialist ViaSat
Coinstar
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. And if you'd like to profit off the trillion-dollar mobile revolution with stocks other than Cirrus Logic, check out this free special report to learn about the surprising star of the mobile revolution.