The measure is intended to put people back to work and shed some light on the employment situation. Michael D. Shear for The Washington Post reports that the timing of the bill is strategic in that the bill should have created more jobs before mid-term elections in the fall. [Health Care ETFs for an Uncertain Outcome.]

The reform is aimed at bringing in a $1.3 trillion in deficit reduction over the next two decades. The jobs bill will also encourage businesses to hire and help put Americans back to work by giving tax breaks to those who hire unemployed workers. [5 ETFs to Play Obama's Clean Tech Budget.]

A few of the ETFs that could get a push from the new law include:

• iShares Dow Jones Transportation Average (NYSEArca: IYT)

• Market Vectors Steel (NYSEArca: SLX)

• iPath DJ-UBS AIG Copper ETN (NYSEArca: JJC)

• iShares S&P Global Infrastructure Index (NYSEArca: IGF): Don’t let the “global” in the name fool you; IGF has a 23.1% weighting in the United States and is 40.2% industrial stocks

• Vanguard Industrials (NYSEArca: VIS)

• Claymore/Delta Global Shipping (NYSEArca: SEA)

Trend 1: Small Caps Kicking You-Know-What

Small-cap ETFs are dusting large caps. The primary reason? History. In recovery periods, small-caps tend to lead the way toward the light. They’re smaller and quicker to react to shifts in economic and market conditions. Large companies have lots of flag poles up which to run various matters and issues, leaving big changes in strategy to get caught in bureaucracy. In the last month, small-caps are up about 11%, vs. about 7% for large-caps and 8% for mid-caps. [The Case for Small-Caps in 2010.]

• Rydex S&P SmallCap 600 Pure Value (NYSEArca: RZV)
• WisdomTree SmallCap Dividend (NYSEArca: DES)
• iShares S&P SmallCap 600 Growth (NYSEArca: IJT)

Trend 2: What’s the Beef with Fixed Income?

Even we have sounded the alarm: fixed-income could get hit as the Federal Reserve hikes interest rates. And that’s still true. But right now, it’s copacetic; there’s been a lot of bark with no bite yet in sight. Yields continue to be appealing in certain areas, too. For example, the SPDR Barclays Capital High Yield Junk (NYSEArca: JNK) is yielding 12.2% right now. Long-term Treasuries will get beat in a higher interest rate environment, but short-term Treasuries and corporate bonds have been fine. Have an exit strategy in place if and when that changes, though. [8 ETFs That Can Add Income to Your Portfolio.]

• iShares iBoxx $ High Yield Corporate Bond (NYSEArca: HYG)
• Vanguard Short-Term Bond (NYSEArca: BSV)
• SPDR Barclays Capital Short-Term Corporate Bond (NYSEArca: SCPB)

Trend 3: Base Metals Heat Up

The “shiny” metals are out; base metals are in. The stars seem to have aligned for a possible rally in base metals: China is growing, building and importing base metals faster than they can be used in new skyscrapers; other emerging markets are also building and importing metals; the auto market is slowly recovering, lending support for a rally in platinum and palladium and the U.S. housing market is recovering in fits and starts. All this building and recovery means more demand for copper, platinum, steel and other building blocks of construction at home and abroad. [Why Metals ETFs Are Leading the Charge.]

• PowerShares DB Base Metals (NYSEArca: DBB)
• iPath DJ-UBS Copper ETN (NYSEArca: JJC)
• ETFS Physical Platinum (NYSEArca: PPLT)

For more stories on spotting trends and acting on them, read our special report on trend following.

Last year was the Year of All Things Gold as the safe haven metal supplied investors with a shelter for the market turmoil. But rampant fear in the marketplace has abated, and a bigger risk appetite is the order of the day. That means markets are moving, countries are growing and they’re hunting down the materials they need to get it going:

• Industrial demand for base metals is expected to take off as emerging economies continue to build up. It’s anticipated that the biggest beneficiaries of this will be aluminum, copper, nickel, lead and zinc, reports AAP on The Sydney Morning Herald.

• Commodity Online reports that China and India are expected to be big catalysts for base metals prices, as both economies see more industrial growth this year. [A Guide to Investing in Metals ETFs.]

• The U.S. dollar has been weakening, lending some support to these metal prices. As the dollar weakens, commodities priced in dollars will become cheaper for overseas buyers.

• The world’s supply of copper is concentrated in Chile. Worries about supply have been reinforced by the large earthquake and interruptions in mine production, reports Rebekah Curtis for Reuters. [The State of Aluminum, Copper and Nickel ETFs.]

For more stories about metals, visit our metals and mining category.

• PowerShares DB Base Metals (NYSEArca: DBB)

• Market Vectors Steel (NYSEArca: SLX)

• iPath DJ AIG Nickel ETN (NYSEArca: JJN)

• iPath DJ AIG Copper ETN (NYSEArca: JJD)

The First Trust ISE Global Copper (NASDAQ: CU) and First Trust ISE Global Platinum (NASDAQ: PLTM) give investors the first exposure to platinum and copper equities in an ETF form.

Until now, copper exposure was available in an exchange traded note (ETN) via iPath Dow Jones UBS Copper (NYSEArca: JJC) or as a component of the PowerShares DB Base Metals (NYSEArca: DBB), which is 40% copper futures. [Why Metals ETFs Are Leading the Charge.]

Platinum exposure is available through the popular ETFS Physical Platinum (NYSEArca: PPLT), as well as through ETNs such as UBS E-TRACS Long Platinum (NYSEArca: PTM), UBS E-TRACS Short Platinum (NYSEArca: PTD) and iPath DJ-UBS Platinum (NYSEArca: PGM).

Mark Abssy, index and ETF manager at ISE, says the indexes behind the copper and platinum funds were developed in 2008 as investor interest in the ISE and First Trust natural gas ETF, First Trust ISE-Revere Natural Gas (NYSEArca: FCG) was gaining momentum. Commodities were also becoming a part of more and more headlines, leading ISE to think about other commodities that might be of interest to investors. “We were thinking along those lines – what can we help investors get exposure to?” Abssy says. “The first two we came up with were platinum and copper.” [Platinum and Palladium Price Drivers.]

The market cap minimum of $75 million is admittedly low. The reason, Abssy says, is that when considering  mining stocks, there are a number of companies still in the exploration stage, but have yield estimates based on geological surveys. “Much of their valuation is tied to the value of the commodity,” he says. Those companies tend to be more sensitive to underlying commodity price action, offering more direct exposure to the underlying commodity than fully functioning mines. [Your Guide to Investing In Metals ETFs.]

In the copper fund, the country allocations are Canada, 42%; Great Britain, 22%; Peru, 9.3%; Australia, 7%. There are also holdings in Russia, Turkey and other areas. If you’re surprised that Chile isn’t on the list, there’s a reason for that. Abssy acknowledges that while Chile is a major copper producer, many of the names already held in the underlying index already have major properties in Chile. Also, many of the major Chilean miners are still privately held. [The Impact of Chile's Earthquake.]

“There are many cross-deals in the mining industry,” Abssy says. “You wouldn’t necessarily think that a tiny company is connected to a large one, but the industry is like a big extended family.”

The platinum country breakdown is South Africa, 29%; Canada, 25%, Great Britain 17%. Other countries appearing in smaller amounts include Australia, Russia and a few U.S. names.

The outlook for both the platinum and copper markets looks to be on the bullish side of things as the domestic and global economies recover even further:

• Auto demand might be tepid now, but it’s showing signs of reviving.
• Ryan Issakainen, an ETF strategist at First Trust, also points out that when you combine the rate of cars being scrapped to the rate of population growth, it’s potentially a formula for an increase in auto sales and production in the United States alone. Auto demand in emerging markets is also becoming more robust.
• There are also tightening emissions standards; platinum and palladium are key components of catalytic converters, and can’t be substituted with any other metal.
• There are trace amounts of platinum group metals (PGMs) found in smoke detectors, airbags, computer hard drives and they’re heavily used in the pharmaceutical and cancer research industries, as well.
• On the copper side, a Barclays study recently projected that by the end of 2015, 1.5 billion Chinese citizens would each be using 12 pounds of copper – “astronomical when you think about the relatively tight supplies of copper,” Issakainen says.
• Copper is also a major component in new buildings – it’s heavily used in wiring and pipes, two things any modern buildings can’t get by without. “Copper is used very heavily in the emerging markets buildup,” says Issakainen.

Both funds have an expense ratio of 0.70%.

For more stories about copper and platinum, visit our categories.

Examine a list of the top-performing funds in the last month, and you’ll find it lousy with base and industrial metals. [Metals and Mining ETF Outlook.]

Among the funds showing the most strength in recent weeks include:

• SPDR S&P Metals & Mining (NYSEArca: XME), up 23.1% in the last month

• Market Vectors Steel (NYSEArca: SLX), up 20.2%

• iPath DJ AIG Copper (NYSEArca: JJC), up 18.8%

• Market Vectors Coal (NYSEArca: KOL), up 18.4%

Even iShares MSCI Australia (NYSEArca: EWA), a proxy for basic materials if there ever was one, has gone gangbusters in the last month, shooting up 15%.

What gives?

• Some risk appetite is returning. Greece still has no clear resolution to its crisis, but assurances that a deal is close has lured more investors to come out and play. [9 ETFs for Dollar Bears and Bulls.]
• Emerging markets, as usual. China, especially, has led the drive to consume copious amounts of copper and steel. But don’t forget other emerging markets. India, Brazil, South Africa, Egypt and others are in various stages of amassing raw materials to support their growth efforts. [China's Buying Spree.]
• Supply and demand. Mother nature has crimped Chile’s efforts at mining and producing copper. While the country’s miners are mostly back and running, aftershocks could threaten progress. China is rabidly consuming coal and iron ore, but they’re two of the commodities in shortest supply. [The Outlook for Coal and Steel.]

For full disclosure, Tom Lydon’s clients own shares of EWA and XME.

China’s Premier Wen Jaibo is keeping the country on an light monetary stance while maintaining an active fiscal policy. The statements turned investors positive on China and reinforced the belief that the juggernaut will continue to be a major consumer of metals, reports Michael Taylor and Rebekah Curtis for Reuters. [A Guide to Metals ETFs.]

China is just one part of the base metals equation, albeit a large one. Let’s take a look at the big picture:

Nickel. The slump in nickel prices has been supplanted by stronger demand and low stock prices since the lows of last March. Price and volume recovery will depend upon patterns changing in both supply and demand in various parts of the world, says Metal Miner. Actual nickel production may  fall behind demand as the stainless steel industry increases usage, reports Anna Stabum for BusinessWeek. [What Influences Metals Prices?]

• iPath DJ AIG Nickel ETN (NYSEArca: JJN)

Aluminum. Overall, the outlook for aluminum is improving, as prices and demand have both waned. The Australian on The Wall Street Journal reports aluminum prices are 55% higher than they were last year at this time.

• iPath DJ-AIG Aluminum ETN (NYSEArca: JJU)

Copper. Copper scrap is now selling at all-time highs as high-grade electrolytic copper wire scrap, which feeds about 40% of world smelters of the metal, tends to become scarce as the Snowpocalypse delays collection, reports Anna Stabum for BusinessWeek.

Chile’s earthquake and numerous aftershocks could keep copper prices higher if transportation and production disruptions continue to be issues.

• iPath DJ-UBS AIG Copper ETN (NYSEArca: JJC)

For more stories about metals, visit our metals and mining category.

While the unemployment rate held steady at 9.7% and 36,000 jobs were lost in February, the number of jobs the economy shed was far less than what economists had been expecting. The impact of the snowstorms on the East Coast may have had a small impact on the final figures, but the Labor Department wouldn’t say how much.

The jobs report quickly had an impact on other areas of the market, primarily easing investors’ fears and encouraging them to take on more risk. That, combined with reassurance from China’s premier that the country would stick to a looser monetary stance, helped boost copper prices by more than 3%. Concerns about China’s demand for metals has weighed on investors, but those fears may be unfounded, as China still intends to be a major consumer of metals. iPath DJ-UBS Copper TR Sub-Index ETN (NYSEArca: JJC) is up nearly 2% this morning. [Your Guide to Investing in Metals ETFs.]

High-yielding currencies are also leading the charge in the markets this morning, with the dollar gaining ground on the yen and dipping against the euro and other higher-yielding currencies, such as the Australian Dollar. Greece woes are keeping the euro’s gains tempered, though. CurrencyShares Australian Dollar Trust (FXA) is up about 0.6% this morning; the WisdomTree Dreyfus Euro (NYSEArca: EU) is flat. [Read Our Currency ETF Special Report.]

Read the disclaimer, as Tom Lydon is a board member of Rydex|SGI.

Chile’s economy is regarded as one of the best in Latin America. Thanks to the country’s already stable economic position, the impact of the earthquake on the country’s economic well-being will likely be minimal, reports Will Smale for BBC News. [Copper and Chile ETFs Impacted by Earthquake.]

Eqecate, a company that helps insurers model catastrophe risks, believes that the Chilean quake may cost up to $30 billion in damages, or 15% of annual economic output. Research group Capital Economics estimates that the cost will be between the range of $15 billion to $30 billion. Despite the temblor, the research group projects that the economy will expand by 5% this year. [Your Guide to Investing in Metals ETFs.]

How’s that? Chile may have positioned itself to weather storms like this by thinking and planning ahead. The Chilean economy is seen to be sound as a result of prudent fiscal spending. The government has saved much of the revenue that came from its copper reserves. Additionally, inflation is currently 1.5% and the Chilean interest rate is 0.5%. All together, these factors contribute to Chile’s strong credit rating.

One black mark: Chile’s unemployment rate stands at 9.7%.

Chile’s copper mines suffered minimal damage from the earthquake and most have already resumed normal operations, but the country’s refineries are still closed. The earthquake halted nearly a quarter of the Chile’s copper output, but by getting back online so quickly, may close the gap sooner than later. [Why Metals Are Showing Strength.]

Copper prices have been surging since the quake, moving for a fourth consecutive session today.

For more information on Chile, visit our Chile category.

• iShares MSCI Chile Index (NYSEArca: ECH)

• iPath Dow Jones UBS Copper Tr Sub-Index ETN (NYSEArca: JJC)

• PowerShares DB Base Metals Fund (NYSEArca: DBB)

Max Chen contributed to this article.

An increasing federal deficit coupled with a large decline in the U.S. dollar may eventually translate into rapid inflation and higher metal prices, while the dollar’s recent strength and higher interest rates could mean that precious metals will drop in value, comments Jonathan Bernstein for ETFZone. [Hedge Inflation With These ETFs.]

That’s why investors need to be prepared to act accordingly. Not all metals have a similar reaction to shifting market conditions.

ETFs offer exposure to precious metals such as gold, silver, platinum and palladium, and base metals like copper, nickel and lead. Precious metals are lightly counter-cyclical, affected by interest rates and the dollar, while base metals are highly cyclical, performing well in a strong economy. [4 Factors Influencing Metals ETFs.]

Commodity ETFs come in a variety of incarnations; which you choose is up to you. It depends on the kind of exposure you want, what kind of risk you’re willing to endure and taxes you’re willing to deal with.

Funds can be physically backed by the metal itself, it can have ownership of futures contracts to buy the metal, it can hold companies involved in the mining and production of a metal. [Copper ETN: Forging Ahead?]

A fund that is backed by the physical commodity has the metal stored in a vault. Investors should note that these funds have storage fees calculated into their expense ratios. Also, physical bullion trades are taxed by the IRS at the collectibles rate of 28% instead of the long-term equity rate of 15%. Investors should still consult their tax experts for specific advice, though. [What's Driving Platinum and Palladium ETFs?]

• SPDR Gold Shares (NYSEArca: GLD)
• iShares COMEX Gold Trust (NYSEArca: IAU)
• iShares Silver Trust (NYSEArca: SLV)
• ETFS Physical Gold (NYSEArca: SGOL)
• ETFS Physical Silver (NYSEArca: SIVR)
  
• ETFS Physical Platinum Shares (NYSEArca: PPLT)
• ETFS Physical Palladium Shares (NYSEArca: PALL)

Funds may also own futures contracts to buy the metal. Contracts are rolled over before expiration, and another contract is purchased in its place. Rolling over contracts generates trading fees. Futures contracts are taxed at a lower maximum rate of 23%.

• PowerShares DB Precious Metals Fund ETF (NYSEArca: DBP)
• PowerShares DB Base Metals Fund ETF (NYSEArca: DBB)
• PowerShares DB Gold Fund ETF (NYSEArca: DGL)
• PowerShares DB Silver Fund ETF (NYSEArca: DBS)
• Ultra Gold ETF (NYSEArca: UGL)
  
• ProShares UltraShort Gold (NYSEArca: GLL)
• ProShares Ultra Silver (NYSEArca: AGQ)
• ProShares UltraShort Silver (NYSEArca: ZSL)

Many metals ETFs give investors exposure to the companies that mine and produce the metals. While such funds don’t give you access to spot prices, they have their own advantages. One big one is that mining companies can continue to do well if a commodity’s price steps back, but remains far above the cost of production. Such funds also lack the big day-to-day swings that have a tendency to vex futures- and physically-backed metals ETFs.

• SPDR S&P Metals & Mining (NYSEArca: XME)
• Market Vectors Gold Miners (NYSEArca: GDX)
• Market Vectors Junior Gold Miners (NYSEArca: GDXJ)
• EGS DJ Emerging Markets Metals & Mining Titans (NYSEArca: EMT)

Lastly, funds may offer exposure through notes or exchange traded notes (ETNs). ETNs are taxed by the long-term equity rate of 15%. ETNs are unsecured debt backed by the full faith and credit of the issuer. They have no tracking error. [ETNs: Everything You Want to Know.]

• ELEMENTS Rogers International Commodity Metal ETN (NYSEArca: RJZ)
• E-TRACS UBS Bloomberg CMCI Industrial Metals ETN (NYSEArca: UBM)
• iPath DJ AIG Industrial Metals ETN (NYSEArca: JJM)
• PowerShares DB Base Metals Long ETN (NYSEArca: BDG)
• iPath AIG Copper (NYSEArca: JJC)
• iPath DJ AIG Lead (NYSEArca: LD)
• iPath DJ-AIG Aluminum (NYSEArca: JJU)
• iPath DJ AIG Nickel (NYSEArca: JJN)
• E-TRACS UBS Platinum (NYSEArca: PTM)
• iPath DJ AIG Platinum (NYSEArca: PGM)
  
• PowerShares DB Gold Short ETN (NYSEArca: DGZ)
• E-TRACS UBS Short Platinum ETN (NYSEArca: PTD)
• PowerShares DB Base Metals Double Long ETN (NYSEArca: BDD)
• PowerShares DB Base Metals Double Short ETN (NYSEArca: BOM)
• PowerShares DB Base Metals Short ETN (NYSEArca: BOS)
• PowerShares DB Gold Double Long ETN (NYSEArca: DGP)
  
• PowerShares DB Gold Double Short ETN (NYSEArca: DZZ)

For more information on metals, visit our precious metals category or base metals category.

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

Max Chen contributed to this article.

Mine production has been halted in the copper-rich nation as Chile copes with a wave of aftershocks, reports Alix Steel for The Street. What it means in the long term is up in the air; can Chile get its mines up and running again quickly? Or are the temblors signs of more trouble to come for the nation? Chile accounts for one-third of global mine production, so any lingering troubles could have a noticeable global impact.

Analysts say that while the copper mine interruption is certainly a disruption to the copper supply, the larger impact will come from disruption of deliveries from the mines, and from the disruption of power supplies to the mines. [Why the Copper ETN May Gain Strength.]

Although most of Chile’s production comes from the North, and the quake hit the Central part of the country, the damage to the highways will suspend business as usual, because of the lack of access for transporting fuel and other supplies to mines, explains Reuters on Zambia. [Other Reasons a Copper Rally May Last.]

Fore more stories about copper, visit our copper category.

• iShares MSCI Chile Index (NYSEArca: ECH)

• iPath Dow Jones UBS Copper Tr Sub-Index ETN (NYSEArca: JJC)