Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the communication services industry to thrive over time as our world's communications needs persist and grow, the Focus Morningstar Communication Services Index ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The communication ETF's expense ratio -- its annual fee -- is a very low 0.19%. The fund is very 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 has performed well, trouncing the world market over the past year, but it's also not much more than a year old, making it too young to draw many conclusions about. 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?
Several communications companies had strong performances over the past year. Equinix
Other companies didn't do as well last year, but they could see their fortunes change in the coming years. Frontier Communications
The big picture
Demand for communication 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.
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Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Windstream, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool has a disclosure policy.