Jan 27th 2014 5:17PM-Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some Israeli stocks and companies with strong links to Israel to your portfolio but don’t have the time or expertise to hand-pick a few, the Market Vectors Israel ETF could save you a lot of trouble. Instead of trying to figure out which Israeli stocks will perform best, you can use this ETF to invest in lots of them simultaneously.
ETFs often sport lower expense ratios than their mutual-fund cousins. This ETF, focused on Israeli stocks and companies with ties to Israel, sports a relatively low expense ratio — an annual fee — of 0.59%. The fund is tiny, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF is too young to have a meaningful enough track record to assess. 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.