Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect technology-oriented companies, particularly in the software arena, to thrive over time as our technological needs and demands grow, then the iShares S&P North American Technology-Software Index 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 0.48%.
This ETF has performed rather well, beating 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 17%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of software companies had strong performances over the past year. Business software developer TIBCO Software
The big picture
Demand for software 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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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. Motley Fool newsletter services have recommended buying shares of Nuance Communications and TIBCO Software. The Motley Fool has a disclosure policy.