Last year, financing seized up and demand went off a cliff. Today, demand for solar modules, a unit of interconnected solar cells, is so high that most of the industry is sold out. Germany is leading the way, making up about 36% of market demand. France, Italy, the United States and Japan are seeing their own demand rising quickly, reports Jessica Rao for CNBC.

On the supply side, the shortage of polysilicon, the building block for solar panels, is a thing of the past. (Why solar ETFs will shift to a brighter future). A massive oversupply of the material is anticipated over the next three years, giving solar panels a dramatic drop in cost to produce, and therefore utilize. This could lead to greater adoption of solar energy on the consumer level. (Read about the green energy sector here).

For more stories about solar energy, visit our solar category. If you want the scoop on anything and everything energy-related, sign up for our newest special report.

• Market Vectors Solar Energy ETF (NYSEArca:KWT): down 5.4% year-to-date



• Claymore/MAC Global Solar Energy (NYSEArca: TAN): up 1.7% year-to-date

Investors appetite for socially responsible funds may be satisfied with the advent of a genocide-free ETF. The fund would rely on a third-party index provider to help weed out companies around the world that are strongly connected with genocide, reports Svea Herbst-Bayliss for Reuters.

This ETF would join a lineup of other iShares ETFs that deal with socially-responsible investment themes. No other details about the fund’s portfolio were provided. (Other socially responsible ETFs). As people become more aware of human rights abuses around the worlds, funds that screen out such companies could gain traction.

Vanguard is working on an ETF offering overhaul and is currently screening its 157 funds to spot companies that may be involved in egregious patterns of human rights abuses that might warrant divestment.

A special interest group known as Investors Against Genocide has been pushing Vanguard and Fidelity Investments to exit positions in companies such as PetroChina Co, which has strong links to Sudan. (Read about other ETFs themes that are socially responsible).

For more stories about New ETFs, visit our socially responsible category.

ETFs are a good way for investors to capitalize on policy initiatives of the Obama administration while reducing the day-to-day volatility compared to other investment options, such as stocks, remarks Daniel Harrison for IndexUniverse. (Play Obama’s new energy plan).

Health Care opportunities. Jim Oberweis, chief executive of Oberweis Asset Management, believes that “there is a possible positive [outcome] for pharmaceutical companies” since sales of prescription drugs will increase as health care coverage widens. Furthermore, Oberweis argues that health care providers may benefit from more patient visits and biotechs are in a more positive position than previously thought. (More on the health care sector).

Broad-based and niche market ETFs that could benefit from the growth in the number of patients receiving coverage include:

• Health Care Select Sector SPDR (NYSEArca: XLV): up 14.3% year-to-date
• iShares Dow Jones U.S. Healthcare (NYSEArca: IYH): up 15.1% year-to-date
• iShares Dow Jones U.S. Medical Devices (NYSEArca: IHI): up 32.4% year-to-date; IHI is well-diversified, with 58% of assets under management in its top 10 holdings, and a maximum single-stock weighting of 10%. Companies included should benefit from the increase in the number of hospital patient visits.
• PowerShares Dynamic Pharmaceuticals (NYSEArca: PJP): up 10.3% year-to-date; PJP is a well-diversified ETF on large, mostly dividend-paying pharmaceutical companies that have lots of cash on hand and may see an increase in sales of core prescription drugs.
• SPDR S&P Pharmaceuticals (NYSEArca: XPH): up 19.2% year-to-date; XPH is more broadly diversified.
• iShares Dow Jones US Pharmaceuticals (NYSEArca: IHE): up 22.2% year-to-date; IHE focuses more on the oversold traditional pharma brands like PJP.
• SPDR S&P Biotech (NYSEArca: XBI): down 4.3% year-to-date; XBI is well-diversified, with 45% of its funds invested in its top 10 holdings. The fund is also mostly invested in nontraditional pharma companies.
• iShares Nasdaq Biotechnology (NasdaqGM: IBB): up 11.2% year-to-date; IBB has a higher weighting in its top holdings and it focuses exclusively on Nasdaq-listed securities; some large biotech companies may be excluded.

Clean energy. It is no big secret that clean energy is a big policy initiative of the Obama administration. The more notable technologies being pushed into the forefront of the sector are nuclear and solar energy. Solar tech investing is still considered risky because of the industry’s mini boom/bust cycles, but ETFs help minimize volatility. (More on alternative energy).

• Market Vectors Solar Energy ETF (NYSEArca: KWT): down 6.5% year-to-date
• Claymore/MAC Global Solar Energy (NYSEArca: TAN): up 0.3% year-to-date
• Market Vectors Nuclear Energy ETF (NYSEArca: NLR): up 19.7% year-to-date

Max Chen contributed to this article.

The Labor Department has reported that the number of newly laid-off workers last week dropped to 512,000, the lowest point since January. It’s also 4,000 fewer than what economists had forecast. The report has a downside, though: worker productivity in the third quarter rocketed by 9.5%. This means that employers are becoming more efficient and more productive, so companies will have little reason to hire more, report Martin Crutsinger and Christopher S. Rugaber for the Associated Press.

The European Central Bank kept interest rates at a record low today, as expected. Later, the bank’s president will hold a press conference that many expect will give hints as to when the ECB will begin to cut back on bank lending and whether it intends to charge them more for 12-month money, reports Jana Randow for Bloomberg. iShares MSCI EMU (NYSEArca: EZU) is up about 1.5% this morning. (How Europe can keep the ball rolling).

The outlook for retailers brightened somewhat in October. Chain-store sales notched their second consecutive gain, and it was the best performance for the industry in more than a year. The industry reported an overall 1.8% sales jump at stores open for at least a year, reports Stephanie Rosenbloom for The New York Times. Not entirely surprisingly, chains that sell designer brands at a discount were the strongest performers. SPDR S&P Retail (NYSEArca: XRT) is down about 0.7% this morning. (Brand names boost consumer staples).

Climate legislation received a boost today as Senate Democrats received approval of a cap-and-trade bill that aims to reduce U.S. greenhouse gases. Republicans object to the legislation because they feel that it’s being rushed, reports Simon Lomax for Bloomberg. The House bill seeks to reduce emissions by 17% below 2005 levels by 2020; the Senate bill is calling for a deeper cut of 20%. iShares S&P Global Clean Energy Index (Nasdaq: ICLN) is up nearly 2% this morning.

For full disclosure, Tom Lydon’s clients own shares of EZU.

Energy demand around the world is rising, making it an ideal time to address where nuclear power fits into the equation. There are about 70 new plants under construction globally, and there could be more as the world searches for a clean-energy solution. (Will nuclear stocks and ETFs be able to benefit from the talks?)

Hannah Fairfield and Karl Russell for The New York Times report that many companies are concerned that the credit crisis has dealt a critical blow to nuclear power in the United States, which had been perceived as undergoing a renaissance since 2004. (Why nuclear is gaining favor).

There are about 26 plants under construction in the United States right now, but most of the action is coming from overseas. Companies that design reactors, such as General Electric (NYSE: GE), are experiencing rapid growth as Emerging Asia and Europe seek out their business. (Learn more about this sector).

For more stories about nuclear energy, visit our nuclear energy category.

• PowerShares Global Nuclear (NYSEArca: PKN): up 21.3% year-to-date

• Market Vectors Nuclear Energy (NYSEArca: NLR): up 15.8% year-to-date

• iShares S&P Global Nuclear Energy (NYSEArca: NUCL): up 28.3% year-to-date

The Obama Administration has announced that it’s investing $3.4 billion in order to fund this project. Through the plan, 100 private companies, utilities, cities and manufacturers will receive grants ranging from $400,000 to $200 million in order to build a smart energy grid, reports Lynn Sweet for The Chicago Sun-Times. So far, these awards are the largest Recovery Act awards ever made on one day. (Nine things that could affect alternative energy).

Analysis shows that by getting smart grid technology off the ground, it could reduce electricity use by at least 4% by 2030. This would result in savings of $20.4 billion for both businesses and consumers. (Does this mean alternative energy is not so alternative anymore?)

The Senate environment committee also released details of its climate change legislation, which includes the share of “emissions allowances,” which is revenue that comes from regulation of a cap-and-trade system – once it’s in place. The Senate has nearly tripled the share of allowances set aside by the House for transit, inter-city rail, and other efforts to trim transport-based emissions. Elana Schor for Streetsblog reports that the Senate measure would set aside more than 3% of allowances in the first two years of the cap-and-trade system for limiting pollution from the transportation sector.

For more stories about clean energy, visit our alternative energy category.

• First Trust NASDAQ Clean Edge Green Energy (Nasdaq: QCLN)
• iShares Dow Jones U.S. Utilities (NYSEArca: IDU)
• iShares S&P Global Infrastructure (NYSEArca: IGF)
• iShares S&P Global Clean Energy (NYSEArca: ICLN)
• PowerShares WilderHill Clean Energy (NYSEArca: PBW)
  
• PowerShares Global Clean Energy (NYSEArca: PBD)
• PowerShares Cleantech (NYSEArca: PZD)
• PowerShares Dynamic Utilities (NYSEArca: PUI)
• Utilities Select Sector (NYSEArca: XLU)
• Vanguard Utilities (NYSEArca: VPU)
• SPDR FTSE/Macquarie Global Infrastructure 100 (NYSEArca: GII)

All over the world, governments have set aside money for the green energy sector to help get their economies on course, writes Charlie Thomas for FTAdviser. The combined allotment for “green money” in global stimulus packages may be more than $500 billion.

Earmarked funds are being spent on climate change-related investments, such as improvements to railway, grids and water infrastructure.

• The European Recovery Plan involves investments in energy, including offshore wind and carbon capture and storage.
• The American Recovery and Reinvestment Plan will improve renewables, building efficiency, low-carbon vehicles, mass transit, grids and water.
• In December, a climate change meeting in Copenhagen will try and bring more countries, such as China and India, into the environmental accord. Energy efficiency and alternatives will also be addressed. Even if a global agreement on key issues is not met, individual countries will likely continue on with their own projects.

Green technology is becoming popular, but investors should be wary of a possible “green” bubble that could form as a result of hype. (Read how to protect yourself from bubbles). This sector is more of an emerging technologies sector, and investors should note the possible high volatility and risks involved. Find out how to follow trends here.

For more information on green energy, visit our alternative energy category. Among the many ETFs to choose from in this sector include:

• Market Vectors Global Alternative Energy (NYSEArca: GEX): up 7.8% year-to-date

• iShares S&P Global Clean Energy Index Fund (NYSEArca: ICLN): up 7.4% year-to-date

• Claymore/MAC Global Solar Energy (NYSEArca: TAN): up 12.7% year-to-date; FSLR is 10.8%

• iPath Global Carbon ETN (NYSEArca: GRN): down 5.1% year-to-date

• PowerShares Global Wind Energy (PWND): up 38.8% year-to-date

Max Chen contributed to this article.

According to Rebecca Lefton, Andrew Light and Daniel J. Weiss for American Progress, the International Climate Change Negotiations dispelled the myths and revealed the truths about how the world is responding to global climate change:

• Both China and India are planning for emissions reduction and low-carbon development. China is considering raising fuel economy standard for passenger cars to 42.2 mpg from current 36.7 mpg. China is also trying to reduce energy intensity, or energy consumption per unit of GDP, and increase generation of renewable energy. India is planning the most ambitious solar energy goal in the world and has taken steps toward quantifying greenhouse gas emissions.
• Both China and India have agreed to sign new climate agreement so long as it doesn’t inhibit economic growth. Both countries have ratified the Kyoto Protocol and have acknowledged “the scientific view that the increase in global average temperature above pre-industrial levels out not to exceed 2 degrees C.”
• Developing countries do not need to accept binding targets on gas emissions because they have different needs. A majority of global citizens live in poverty and should not be obligated to the same guidelines as developed countries. These developing countries will likely consider future caps.
• Measuring, reporting, and verifying emissions reductions will be accountable by developing and developed countries. China has developed fairly detailed range of quantifying energy and environmental policies. Whereas, developing countries are still improving measurement, reporting and verification capacities.
• Domestic climate legislation and investments in a clean energy economy will help the United States in the clean energy race by boosting job creation and the economy. The American Clean Energy Security (ACES) Act will generate 1.7 million jobs. The act has provisions to assist energy-intensive, trade-sensitive industries competing with firms from countries without reduction plans.
• The U.N. Climate Change Conference slated for December in Copenhagen is part of a process for structuring an international agreement. Upon its success, there will be a new treaty to replace the Kyoto Accord.
• Present mid-term emissions reductions proposals coupled with complementary measures will allow the United States to equal targets to those of other developed countries.
• The United States has already gone forward to reduce greenhouse gas pollution before any potential agreed upon worldwide commitment at the UNFCC meeting in December. Efforts in reducing emissions and investing in renewable energy at the state and federal level have already taken place.
• The E.U. Emissions Trading System has helped reduce pollution by 50 to 100 million metric tons of carbon dioxide per year. The program initially led to windfall profits from polluters, with price spikes for consumers, but revisions has made the program more successful.

• PowerShares Wilderhill Clean Energy Portfolio Fund (NYSEArca: PBW): up 24.7% year-to-date

• Market Vectors Global Alternative Energy (NYSEArca: GEX): up 7.9% year-to-date

For more information on green energy, visit our alternative energy category.

Max Chen contributed to this article.

Investors still have to decide on which industries are best positioned to perform well in the recovery, remarks Matt Krantz for USA Today. Possibly the worst thing any investor could do is jump in after sectors that have already gained, continually chasing performance.

After betting on financials and tech companies, investors are now looking for actual economic growth in the second half of the year, especially in consumer discretionary companies that make big-ticket items such as automobiles and appliances. Krantz notes, however, that investors are applying prudent techniques when picking out future winning sectors:

History. Certain sectors and certain companies do better at certain points of an economic cycle. If the past repeats itself, solid performance could come out of consumer discretionary stocks, along with materials and industrial companies. These “cyclical” sectors could gain as demand for goods picks up. Later, energy stocks could gain as companies expand to cover all the demand.

• Consumer Direct Select Sector SPDR (NYSEArca: XLY): up 30% year-to date
• iShares Dow Jones U.S. Basic Materials (NYSEArca: IYM): up 55% year-to-date
• SPDR Select Sector Fund- Basic Industries (NYSEArca: XLB): up 43% year-to-date
• Energy Select Sector Energy Fund (NYSEArca: XLE): up 17.7% year-to-date

Cycles. Growth in revenue is still down and may continue to be so in the third quarter, but some businesses could show early growth. The businesses that will perform will be the ones to stop cost cutting and start expanding. This is one of the reasons why financials may continue to benefit as demand for loans increases.

• SPDR Financial Select Sector (NYSEArca: XLF): up 23.3% year-to-date

Diamonds in the rough. Some small banks and brokers may stand out by enticing customers who have become estranged from large financial firms. Modernization of bridges and roads will lead to a boom in the infrastructure industry. Government investment into green tech will also likely help the alternative energy industry. As more companies use the internet to conduct business, business that build internet networking systems may also become in demand.

• iShares S&P Global Infrastructure (NYSEArca: IGF): up 13.8% year-to-date
• PowerShares Wilderhill Clean Energy Portfolio Fund (NYSEArca: PBW): up 28.9% year-to-date
• iShares Networking Fund (NYSEArca: IGN): up 61.7% year-to-date

Not so good. Sectors dependent on consumers may not see previous cash flows for awhile yet. Businesses such as retailers, restaurants and casinos may also continue to struggle.

Watch the trends. There’s no such thing as a “sure thing” in the markets, otherwise no one would ever lose anything. We can all guess which sectors will perform and which won’t, but reality could bear out differently. Watch the trend lines to spot the true opportunities, and have a stop loss in place, as well.

Max Chen contributed to this article.

Chu believes that the 30%-40% emission reduction goal in the United States is an aggressive but technically possible goal. Matthew McDermott for TreeHugger reports that developing nations such as China, Brazil and India are calling on the United States to make these changes happen.

The big business and politics in the United States makes what is politically achievable (in terms of emission reduction commitments) far, far lower than what it is other nations. Foon Rhee for Political Intelligence reports that Rep. Edward J. Markey (D – Mass.) supports the Obama administration for their latest higher fuel efficiency and emissions requirements for cars and tracks. The proposed standards include:

• The auto industry’s fleet of new vehicles to average 35.5 miles per gallon by 2016.
• Vehicle model years 2012 through 2016 are included and allow automakers to comply with all federal requirements as well as standards pushed by California, Massachusetts, and about a dozen other states.
• The consumer demand for fuel-efficient cars was evident in the “cash for clunkers” program. The bill will help keep showrooms stocked with these vehicles.
• The administration estimates the requirements would cost up to $1,300 per new vehicle by 2016, but would save the average driver $3,000 in fuel costs over the life of the vehicle.
• The new standards would save 1.8 billion barrels of oil over the lifetime of the vehicles purchased during 2012-16 and would cut global warming pollution by 950 million metric tons of total carbon dioxide equivalent emissions, according to Markey’s office.

The Green Investor on Seeking Alpha has some ways to invest in the green movement, and capture some of the effects of the recent legislation:

• Market Vectors Global Alternative Energy (NYSEArca: GEX): up 13.8% year-to-date

• PowerShares Cleantech Portfolio (NYSEArca: PZD): up 33.2% year-to-date

• iShares S&P Global Clean Energy Index Fund (NYSEArca: ICLN): up 13.2% year-to-date

For more stories about green energy, visit our alternative energy category.