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.
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Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Amazon.com, 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 EMC and Amazon.com. Motley Fool newsletter services have recommended buying shares of Amazon.com, Acme Packet, and VMware. The Motley Fool has a disclosure policy.