Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect media-related companies to thrive over time as our growing population craves more information and entertainment, the PowerShares Dynamic Media ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The PowerShares ETF's expense ratio -- its annual fee -- is 0.63%. The fund is on the small side, 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, trouncing the world market over the past three years and beating it over the past five. 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 media-related companies had very strong performances over the past year. Lionsgate Entertainment
Madison Square Garden
Sirius XM Radio
Marketing, events, and tourism specialist Viad
The big picture
Demand for media 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, owns shares of Apple, 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 Apple and Madison Square Garden. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.