Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If, for example, you're interested in investing in companies in which insiders have been loading up on shares (as that can only be a bullish move), the Guggenheim Insider Sentiment ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Guggenheim ETF's expense ratio -- its annual fee -- is 0.65%. 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 rather well, beating the S&P 500 over the past five years and roughly matching it over the past three. 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?
More than a handful of companies with insider buying had strong performances over the past year. General Electric
Far smaller than GE but up 31% over the past year is TASER International
Mortgage and fleet-management services company PHH
Rentech Nitrogen Partners
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.
If you're thinking of investing in General Electric, check out our new premium research report on it. Our analysts have jam-packed this report with the opportunities and threats that could cause GE to rise or fall, and the report and comes with a full year of free updates.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of JPMorgan Chase, but she holds no other position in any company mentioned. Check out her holdings and a short bio. The Motley Fool owns shares of JPMorgan Chase. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.