Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the industrials industry to prosper as the global economic recovery gains steam, the PowerShares Dynamic Industrials ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The PowerShares ETF's expense ratio -- its annual fee -- is 0.60%. That's a bit on the steep side for an ETF, but still far lower than the typical stock mutual fund. The fund is very 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, beating the 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.
What's in it?
Plenty of industrial-related companies had strong performances over the past year. United Parcel Service
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Delta Air Lines
The big picture
Demand for industrial goods and services isn't going away anytime soon. 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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