Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the energy industry to thrive over time, as our planet's population keeps growing and demanding more power, the Energy Select Sector SPDR ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The energy ETF's expense ratio -- its annual fee -- is a very low 0.18%.
This ETF has performed very well, handily beating the world markets over the past three, five, and 10 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 an ultra-low turnover rate of 3%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Many energy companies have not turned in the strongest performances over the past year, but they could see their fortunes change in the coming years. Halliburton
The big picture
Demand for energy 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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