Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect consumer services companies to thrive over time, especially as the global economies recover and people feel more able to spend, the iShares Dow Jones US Consumer Services ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF's expense ratio -- its annual fee -- is a relatively low 0.47%. The fund is fairly 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 well, outperforming the world market 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 a low turnover rate of 5%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several consumer-services companies had strong performances over the past year. For example, priceline.com
The big picture
Demand for consumer 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.
If you like McDonald's, and would like to find other similarly dominant companies, check out our special free report: "3 American Companies Set to Dominate the World." (McDonald's is one of them.)