Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the cloud-computing industry to grow over the coming years, the First Trust ISE Cloud Computing Index ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The First Trust ETF's expense ratio -- its annual fee -- is 0.60%. 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 doesn't have much of a performance to assess, as it's very young. Still, it's the future that counts far more than the past, and 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?
Many major cloud-computing companies did not perform well over the past year, but they could see their fortunes change in the coming years.
Data storage specialist NetApp
Cloud-computing company VMware
Meanwhile, data storage titan EMC
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.
EMC is appealing but it's not the only beneficiary when it comes to data management. There's another stock to profit from the new technology revolution. This company helps other companies analyze all that data. Get a free report on it now.