Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect undervalued large companies to perform well over time, as they eventually approach their intrinsic value, the PowerShares Fundamental Pure Large Value Portfolio ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The PowerShares ETF's expense ratio -- its annual fee -- is a relatively low 0.39%.
This ETF doesn't have much of a performance record yet, as it's still less than a year old. It's very small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. You might want to just keep an eye on it as it matures a bit, or you might want to be an early investor. Remember that as with most investments, 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?
As with any diversified ETF, some stocks in its portfolio went up strongly. Tobacco giant Altria
Other companies didn't do as well last year but have promise to rebound this year and beyond. Ford
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.
Longtime Fool contributor Selena Maranjian owns shares of Ford Motor, 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 Altria and Ford. Motley Fool newsletter services have recommended buying shares of and creating a synthetic long position in Ford.
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