Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to invest in most of the overall market in one fell swoop, but would also like to boost your exposure to smaller and undervalued companies, the FlexShares Morningstar U.S. Market Factor Tilt Index ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Tilt ETF's expense ratio -- its annual fee -- is a relatively low 0.27%. The fund is rather small, too, so if you're thinking of buying, beware of occasionally large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF doesn't have much of a track record yet since it's so new. 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.
What's in it?
Plenty of companies had strong performances over the past year. Apple
Philip Morris International
Other companies didn't do as well last year, but they could see their fortunes change in the coming years. Schlumberger
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, whom you can follow on Twitter, owns shares of Apple, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.