Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the industrial sector to thrive as the global economy eventually recovers, the Vanguard Industrials ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The industrial ETF's expense ratio -- its annual fee -- is a low 0.24%.
This ETF has a reasonable performance record, slightly outperforming the S&P 500 over the past five years and losing to 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.
With a low turnover rate of 10%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several of this ETF's components made strong contributions to its performance over the past year. Railroad company CSX
Other companies didn't help the ETF's returns last year, but could have an effect in the years to come. Waste Management
The big picture
Demand for industrial companies 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.
ETFs can help you find the way to better investing results. To find some great ETF investing ideas, take a look at The Motley Fool's special free report, " 3 ETFs Set to Soar During the Recovery ."