Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect emerging-market economies to grow briskly over time and want to own some of their companies in your portfolio, the Vanguard MSCI Emerging Markets ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard ETF's expense ratio -- its annual fee -- is a very low 0.20%. (Vanguard is known for low fees.)
This ETF has performed rather well, handily beating the overall world market 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 low turnover rate of 10%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of emerging-market companies had strong performances over the past year. Taiwan Semiconductor
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Brazil's oil and gas giant Petrobras
India-based outsourcing expert Infosys
Brazil-based iron-ore producer 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.
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