Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add a handful of large-cap stocks to your portfolio and prefer ones that tend to not zigzag in price too sharply, the Russell 1000 Low Volatility ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The Russell ETF's expense ratio -- its annual fee -- is a very low 0.20%. The fund is fairly 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 is far too young to have its performance assessed. And 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 low-volatility large-cap companies had strong performances over the past year. Abbott Labs
Philip Morris International
United Parcel Service
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Hartford Financial
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.
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Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, holds no position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of Abbott Laboratories. Motley Fool newsletter services have recommended buying shares of FedEx. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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