NEW YORK (CNNMoney) -- Love ETFs? Love your smartphone? Well break out your iPhone, Droid or BlackBerry. Starting today, you can buy a smartphone ETF.
First Trust Portfolio launched the new ETF on Friday under the ticker FONE (FONE). It lists Samsung, Motorola Mobility (MMI) and Nokia among its major holdings. And experts are giving it a thumbs up.
"It's not heavily invested in just a few stocks," said Tom Lydon, president of Global Trends Investments and editor of ETFTrends.com. "It's pretty broadly diversified."
About a quarter of the ETF includes semiconductors, with another 23% dominated by communications equipment.
But the rest is spread out pretty well among electronic equipment, wireless services and others. And some of the bigger names aren't included among the top 10.
There's no Apple (AAPL, Fortune 500), AT&T (T, Fortune 500), Verizon (VZ, Fortune 500) or Google (GOOG, Fortune 500) among the ETF's top 10 holdings, which Lydon says "bodes well for how this index was constructed." But those names are part of both the index and the ETF, which have a total of 72 components.
The smartphone ETF is clearly a niche-y product. It's unlikely that big institutional investors will snap it up. But that might be exactly what retail investors are hungering for.
"Some of these companies are huge," said Rick Ferri, investment adviser at Portfolio Solutions. "You're not getting a really pure play on smartphones."
The ETF comes less than a year after Nasdaq launched the NasdaqOMX CEA Smartphone Index (QFON). Since its debut in April 2010, the index has gained more than 19%.
Still, it's worth noting that this is roughly in line with how the PowerShares QQQ (QQQQ) ETF, which tracks the Nasdaq-100 and holds many of the same stocks, has done.
So investors don't necessarily need to buy the FONE ETF to cash in on the mobile craze. 
How to hide from the NSA
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 4.01% | 4.04% | |
| 15 yr fixed | 3.11% | 3.18% | |
| 5/1 ARM | 2.82% | 2.88% | |
| 30 yr refi | 4.00% | 4.03% | |
| 15 yr refi | 3.11% | 3.16% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 15,318.23 | 138.38 | 0.91% |
| Nasdaq | 3,482.18 | 30.05 | 0.87% |
| S&P 500 | 1,651.81 | 12.77 | 0.78% |
| Treasuries | 2.18 | 0.01 | 0.51% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Pfizer Inc | 29.40 | 0.24 | 0.82% |
| Dell Inc | 13.48 | 0.07 | 0.52% |
| Sprint Nextel Corp | 7.32 | 0.10 | 1.39% |
| General Electric Co | 24.33 | 0.56 | 2.36% |
| Bank of America Corp... | 13.27 | 0.06 | 0.45% |
|
Google says it wants to disclose when the government sends data requests like those in the newly discovered Prism program. More |
Bipartisan Senate reform bill would likely reduce deficits by $175 billion over first 10 years and by roughly $700 billion in the second decade, nonpartisan Congressional Budget Office says. More |
Google says it wants to disclose when the government sends data requests like those in the newly discovered Prism program. More |
Thinking about starting a business? These 10 states saw more startup activity than anywhere else nationwide, according to the Kauffman Index of Entrepreneurial Activity. More |
Total costs for health care services, including everything from doctor visits and prescription drugs to surgeries, are expected to rise 6.5% in 2014, when the Affordable Care Act fully kicks in, according to a report released Tuesday. More |
.
