Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the transportation industry to prosper a s our global economy finally recovers, the iShares Dow Jones Transportation Average ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The transportation ETF's expense ratio -- its annual fee -- is a relatively low 0.47%.
This ETF has performed adequately in recent years, modestly beating the S&P 500, on average, over the past three and five 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 very low turnover rate of 8%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several transportation companies had strong performances over the past year. Union Pacific
United Parcel Service
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Trucking company C. H. Robinson Worldwide
The big picture
Demand for transportation 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 @SelenaMaranjian, holds no position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of United Parcel Service. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.