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.