Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect industrial companies to see their fortunes improve as the global economy gets back on its feet, the Industrial Select Sector SPDR
ETFs often sport lower expense ratios than their mutual fund cousins. The industrial ETF's expense ratio -- its annual fee -- is a very low 0.18%.
Despite the global economy being in the dumper in recent years, this ETF has performed reasonably well, beating the S&P 500, on average, over the past three, five, and 10 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 an ultra-low turnover rate of 4%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Various industry-focused companies had solid performances over the past year. United Parcel Service
Other companies didn't do as well last year, but could see their fortunes change in the coming years. General Electric
Railroad company CSX
The big picture
Demand for industrial goods and services 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.