Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to invest in large-cap companies that appear undervalued, the iShares S&P 500 Value Index ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The value ETF's expense ratio -- its annual fee -- is a very low 0.18%.
This ETF has slightly underperformed the S&P 500 over the past decade. That's not encouraging, but what matter most is future performance and whether you expect many stock prices to rise from this point on. 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 low turnover rate of 23%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of value stocks had strong performances over the past year. For example, Tobacco giant Altria
Other companies didn't do as well last year but could see their fortunes change in years to come. General Electric
The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies and make investing in it -- and profiting from it -- that much easier.
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Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Ford, 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 Ford and Cisco Systems. Motley Fool newsletter services have recommended buying shares of and creating a synthetic long position in Ford. The Motley Fool has a disclosure policy.