Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you expect the health-care industry to thrive over time as our world population grows, ages, and needs medical help, the iShares Dow Jones US Healthcare ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF's expense ratio -- its annual fee -- is a relatively low 0.47%.
This ETF has performed rather well, beating the world market handily 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 a low turnover rate of 7%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of health-care companies had strong performances over the past year. Alexion Pharmaceuticals
The big picture
Demand for health-care products 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 Intuitive Surgical, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of Abbott Labs and Intuitive Surgical. Motley Fool newsletter services have recommended buying shares of Intuitive Surgical. The Motley Fool has a disclosure policy.
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