Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect technology-heavy companies to thrive over time as our growing population embraces new and improved technologies, the iShares S&P North American Technology 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, handily 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 9%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
More than a handful of tech companies had strong performances over the past year. Qualcomm
Data storage giant EMC
Other companies didn't do quite as well last year, but could see their fortunes change in the coming years. Glass and fiber-optics giant Corning
The big picture
Demand for technology 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.
Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Corning and Qualcomm, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of Qualcomm, Cisco Systems, EMC, VMware, and Corning. Motley Fool newsletter services have recommended buying shares of VMware and Corning. The Motley Fool has a disclosure policy.