Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the gambling industry to thrive over time, the Market Vectors Gaming ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Market Vectors ETF's expense ratio -- its annual fee -- is 0.65%. That's a bit higher than many ETFs, but also 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 outperformed the market over the past three years, but it's also very young, with just a few years on the books. 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 19%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Lots of major gambling companies have had weak performances over the past year, but their fortunes could change in the coming years. Wynn Resorts
Melco Crown Entertainment
International Game Technology
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, holds no position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool has a disclosure policy.