Our health care system is ailing and Americans aren’t faring much better:  the health of many U.S. citizens is going down the tubes. About 34% of Americans are obese, and children hold a 31.7% obesity rate. Yikes! This is a burden on the overall economy, says Marc Litchfield for Investment U, as the additional risk of associated illnesses like heart disease, diabetes and other problems, obese Americans cost the country $147 billion in 2008.

The cost of these people are going to hit taxpayers, whether it’s in higher health insurance premiums or higher taxes. [6 ETFs to Consider in a Recovery.]

You can harness this through investment by looking at the stores people hit when they want to make a change:

• When Americans change their diets, they often turn to stores such as Whole Foods (NASDAQ: WFMI) or other purveyors of healthy and/or organic goods.
• Food distribution is another avenue to explore, as the agricultural powerhouses provides seeds and genomics to farmers. An increase in demand for vegetables should benefit companies such as Monsanto (NYSE: MON).
• Check out stores that sell health and fitness equipment. Retailers such as Target (NYSE: TGT), Wal-Mart (NYSE: WMT) and Amazon (NASDAQ: AMZN) have aisles packed with hand weights, yoga mats, workout clothes and even some larger equipment.

For more stories about consumer discretionary, visit our consumer discretionary category.

• First Trust Consumer Staple alphaDEX (NYSEArca: FXG): Holds Whole Foods , Safeway (NYSE: SWY), Del Monte (NYSE: DLM)

• Vanguard Consumer Discretionary (NYSEArca: VCR): Holds Target and Amazon

• Market Vectors Agribusiness (NYSEArca: MOO): Holds producers of grains and fertilizers

MOO has rallied 86% since its March lows, says Kevin Cook for ONN tv. MOO is an interesting way to play commodity shares because it does not use futures contracts or commodity swaps to invest. [How did 2009 pan out for commodity ETFs?]

The latest crackdown on the regulation for commodity-focused ETFs that invest in futures contracts is another reason investors who want to sidestep that would want to think about equity-based commodity funds. [How the CFTC affected ETFs.]

MOO diversifies between major food and seed manufacturers, as well as exposure to  seed, fertilizer, machinery and food competitors. The global diversity among the companies means you gain broad expertise across many geographies and economies addressing the challenges of feeding the world. [The outlook for agriculture stocks.]

For more stories about agriculture, visit our agriculture category.

• Market Vectors Agribusiness (NYSEArca: MOO): up 4.4% in the last month

Defensive sectors have led the market over the last few weeks, remarks Gary Gordon for TheStreet, although, it might be because of year-end yield harvesting or efforts to combine cash-flow ETFs with growth ETFs. Among some of the top ETFs leading us out of 2009 include:

• Utilities Select Sector SPDR (NYSEArca: XLU)

• iShares Dow Jones U.S. Telecom (NYSEArca: IYZ)

Additionally, semiconductors and agribusiness are still performing remarkably well.

• SPDR S&P Semiconductor (NYSEArca: XSD)

• Market Vectors Agribusiness ETF (NYSEArca: MOO)

According to Gordon, the U.S. dollar carry trade, or “risk trade,” has a little more juice left to be squeezed out of it for these reasons:

• Government policy. “Risk trade” is the world’s belief that the U.S. interest rates will remain at practically nothing while the dollar remains weak. The U.S. government currently hasn’t shown any initiative in strengthening the dollar, and policies like health care reform, fiscal stimulus and the Fed’s reluctance to change rates have all kept the dollar from appreciating.
• Advisor strategy. Gordon has increased his exposure to utilities and others are doing the same. One ETF-only advisor specifically noted positions in technology, telecoms and utilities because of the prospect of growth with stable cash flows. [An ETF to invest in the "smart-grid" plan.]
• The U.S. dollar. The PowerShares DB U.S. Dollar Index Bullish (NYSEArca: UUP) may have gained recently; however, investors should know that since March, UUP mostly finished every month lower than the month before it. A true trend reversal may need something more substantial. [Gains in the dollar.]

These are some ETFs that help an investor interested in capitalizing on the carry-trade. [Playing the carry-trade with ETFs.]

• PowerShares DB G 10 Currency Harvest (NYSEArca: DBV)

• iPath Optimized Currency Carry ETN (NYSEArca: ICI)

Max Chen contributed to this article.

The primary reason that agriculture is gaining attention is the basic imbalance in supply and demand: populations continue to expand and food production continues to decline.  The Economist states that there are other causes for the imbalance, as well:

• Changing appetites. As economies gain strength, there’s a tendency to adopt a more Western diet.
• Rising incomes in emerging markets. Richer citizens can afford to eat more food.
• The competition of land between the development of biofuels and food crops and the decline in yield growth in cereals. (Other reasons agriculture attracts assets).

Food prices have risen 9.8% in the first 10 months of the year and “breakfast commodities” are trading at a 30-year high. (Other commodities to look at).

The importance of agriculture is not lost on governments. Agriculture and food security have become the backbone of talks between global leaders as the World Bank increased its spending on agriculture by 50% to $6 billion in 2009. For the first time, the Islamic Development Bank is creating an agriculture department. (Some things to consider when playing agriculture ETFs).  Lastly, countries like the Philippines and India are throwing government money to farmers to aid them in improving crop production and bumping up efficiency. (More on India).

For more stories on agriculture, visit our agriculture category.

The agricultural imbalance opens up investment opportunities for many. Among the ETFs to play it are:

• PowerShares DB Agriculture (NYSEArca: DBA): down 0.6% year-to-date.

• Market Vectors Agribusiness ETF (NYSEArca: MOO): up 53.2% year-to-date

• Market Vectors Hard Asset Producers (NYSEArca: HAP): up 40.5% year-to-date

• E-Tracs UBS Bloomberg CMCI Food ETN (NYSEArca: FUD): up 14% year-to-date

Kevin Grewal contributed to this article.

Van Eck

Van Eck now manages about $9.7 billion in assets. Their varied lineup includes about 20 funds that range from gambling companies to alternative energy to the Persian Gulf, reports Ian Salisbury for The Wall Street Journal.

Their strategy involves “nibbling at the edges”  which enables them to offer products that dabble in niche markets that generally aren’t available elsewhere. While both Van Eck and the fund industry giants with which it competes offer narrowly focused funds, the giants tend to offer slates of ETFs that, taken together, cover the entire market. (ETF portfolio basics).

Van Eck’s offerings don’t cover the spectrum, though. They have funds that cover steel, Russia and the gold mining industry, but you won’t find funds aimed at Japan or Western Europe. What most of their ETFs do have, as the company says, is some kind of relationship to “hard assets.” (The benefits of hard assets).

For more stories about ETFs, visit our ETF 101 category.

• Market Vectors Russia (NYSEArca: RSX): up 116.6% year-to-date

• Market Vectors Gold Miners (NYSEArca: GDX): up 36.3% year-to-date

• Market Vectors Agribusiness (NYSEArca: MOO): up 38.9% year-to-date

As the Commodity Futures Trading Commission (CFTC) mulls over position limits for futures-based commodity ETFs, many providers are launching commodity equity funds to help sidestep the issue altogether. (The four types of commodity ETFs).

Cinthia Murphy for Index Universe lays out the facts:

• It’s not a one-to-one relationship. The long-term correlation between equities and futures is good, but not perfect.
• Investing in commodities-linked equities can be more volatile than tracking spot prices of commodities, warns Ed Lopez, product manager for Van Eck. “Any small movement in spot prices can actually affect producers greatly,” he says.
• Futures-based commodity index products may, over time, demonstrate significant tracking error against spot indexes because of the influence of contango, which is when the futures prices is above the expected future spot price.
• Equities are performing better than futures this year. Many investors may be a little skittish of futures while the CFTC officially decides what the limits will be. (How to avoid bubbles).

For more stories about commodities, visit our commodity category.

Some equities-based commodity ETFs:

• ALPS ETF Trusts Jefferies TR/J CRB Global Equity Index Fund (NYSEArca: CRBA)
• Market Vectors Agribusiness (NYSEArca: MOO)
• Market Vectors RVE Hard Assets Producers (NYSEArca: HAP)
  
• SPDR S&P Metals & Mining (NYSEArca: XME)

Specialty-sector ETFs, or “thematic” ETFs, have become a hit with investors, covering more than 40 unique themes in the market with more than $10 billion in assets under management, according to IndexUniverse.

While some consider thematic ETFs “gimmicky” and believe these forms of ETFs are only popular when the media is hyping the sector, they have their advantages and an investor should be aware that such options are available.

Specialty ETFs can help round out a portfolio and allow investors to take advantage of different segments of the market. To spot opportunities, watch the trend lines.

Alternative energy. Skyrocketing energy prices have brought more investor interest to all sorts of energy investments. The largest alternative energy ETF is PowerShares WilderHill Clean Energy Portfolio (NYSE Arca: PBW), currently up 23.4% year-to-date, with $743 million in assets under management. PBW is more focused on U.S.-listed companies.

Coal. The cheapest energy source of BTUs. Ever-increasing oil prices are encouraging the development of the coal. The largest coal ETF is Market Vectors Coal ETF (NYSE Arca: KOL), currently up 1.3.4% with $277 million in assets. KOL primarily includes mid-cap miners, weighted 49% in U.S. companies, 23% in China and 15% in Indonesia.

Nuclear. Once operational, nuclear power is seen as the cheapest kind of energy, but the industry is still grappling with the issue of nuclear waste. The largest nuclear ETF is Market Vectors Nuclear Energy ETF (NYSE Arca: NLR),  currently up 21.7% year-to-date, with $166 million in assets. NLR has a 40% allocation to uranium miners, with other weightings in power generation and plant construction firms.

Commodities. ETFs are an easy way for a commodity trader to access this area of the market. The largest hard asset commodity ETF is Market Vectors Agribusiness ETF (NYSEArca: MOO), currently up 40% year-to-date, with $1.5 billion in assets. Other areas include water resources, steel, timber and broad-based commodities.

Infrastructure. Infrastructure covers companies involved in construction and repair of roads and bridges, building and maintaining power grids, telecommunication networks and sewage systems. Worldwide stimulus funds have been steadily injecting more money into the sector. The largest infrastructure ETF is iShares S&P Global Infrastructure Index Fund (NYSE Arca: IGF), currently up 12.9% year-to-date, with $267 million in assets.

Transportation. There’s no denying the economic impact of transport systems. The Claymore/Delta Global Shipping ETF (NYSE Arca: SEA) is currently up 25.9% year-to-date, with more than $70 million in assets. SEA is a good indicator for economic activity and commodities demand.

Green. The green sector provides environmentally-friendly technology for an evolving society. The largest green ETF is PowerShares Cleantech Portfolio (NYSE Arca: PZD), currently up 29.8% year-to-date, with $145 million in assets. PZD tracks the performance of companies whose products improve productivity while reducing consumption of natural resources.

Other. Or “miscellaneous” category that includes gaming, luxury items and Chinese real estate to name a few. The largest ETF in this area would have to be Market Vectors Gaming ETF (NYSE Arca: BJK), currently up 46.7% year-to-date, with $108 million in assets. BJK tracks global gaming companies.

Max Chen contributed to this article.

The decline in the price-to-earnings ration is such companies is the biggest of any group in the benchmark index, and it has the companies 23% less expensive than their historical average, Michael Tsang and Lynn Thomasson for Bloomberg report.

Hedge funds are finding it hard to stay away, finding that the opportunity is too good to watch from the sidelines.

Analysts expect that the 29 commodity producers in the S&P 500 will earn an adjusted $10.26 per share in 2010. This 87% increase is substantial and the largest of any S&P 500 industry. A number of factors are at play, but the biggest one is an expected improvement in global demand that could lead to profits for these producers.

Watch the trend lines to see what materializes as the global economy recovers.

• Market Vectors Agribusiness (MOO): up 38.6% year-to-date

• Market Vectors RVE Hard Assets Producers (HAP) up 26.7% year-to-date

• iShares Dow Jones U.S. Oil & Gas Ex Index (IEO): up 21.9% year-to-date

For more stories about commodities, visit our commodiy category.

The United States Department of Agriculture (USDA) released a new study indicating farmers and ranchers could potentially earn billions with the passage of the American Clean Energy & Security Act of 2009, According to Crookstone Daily Times.

Though farmers and ranchers may see a small increase in operational costs because of climate change legislation, the USDA calculated that farmers and ranchers could earn an additional $100 million annually by 2012. In the long term, the agriculture sector could generate an additional $20 billion from carbon reducing measures by 2040.

G8 leaders want a code of conduct for international agricultural investments in less developed nations, reports Stephen Johnston for Filing Service Canada. Proponents of foreign investment into agriculture say they are providing new seeds, technology and capital to an under-invested sector.

Since 2006, 15-20 million hectares of land were sold or are under negotiations for sale to foreign investors. Foreign direct investment in the sector was around $7.6 billion in 2006. Middle Eastern and Asian countries are worried about food security and have been purchasing farmland overseas in an attempt to protect themselves from high food prices.

• PowerShares DB Agriculture (DBA): down 4.5% year-to-date

• Market Vectors Agribusiness (MOO): up 34.7% year-to-date

For more information on agriculture, visit our agriculture category.

Max Chen contributed to this article.

The food plan initiative, part of the Group of 8’s Summit meeting, grew from a $15 billion project over three years to $20 billion. Peter Baker for The New York Times reports that Obama did clarify that whether or not developed nations have an obligation to help Africa, the continent of nations has to build “transparent, efficient institutions.”

Some of the highlights in the G8’s food plan, mentioned by Roger Runningen for The Age:

• A three-year program of up to $20 billion  in agricultural investments to help the world’s poor farmers grow and sell more food
• The initiative would be funded by G8 countries and international organizations, including the World Bank, along with other nations and emerging markets to help support the cause
• A “shift” from food aid, this plan is intended to provide assistance to help the countries themselves  put in place the right policies to be able to produce food by themselves
• Overall hunger reduction and creation of economic growth while sustaining producing natural resource bases

The effort could affect at least three ETFS, and potentially more if it proves to be successful:

• Market Vectors Agribusiness (MOO): up 18.7% year-to-date; the plan could step up demand from producers

• PowerShares DB Agriculture (DBA): down 7.6% year-to-date;  this ETF holds futures for the staples of diets around the world – corn, wheat, sugar and soybeans

• E TRACS  UBS Bloomberg CMCI Food ETN (FUD): up 1.4% year-to-date;  tracks an index of 11 agricultural futures contracts and two livestock futures contracts. (Note that ETNs differ from ETFs).

For more stories about agriculture, visit our agriculture category.