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.

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

Is the time right to enlist nuclear energy as a main power source in our efforts to clean our air? Patrick Moore for Austin-Statesman Journal reports that several leaders and groups within the environmental movement now recognize that the nuclear energy industry has a stellar safety record and can meet the nation’s demand for power with virtually emissions-free energy. (Read more about the fight for climate change).

Nuclear energy already produces 72% of all carbon-free electricity in the country. Apparently nuclear has the power to save our climate bill and our cleaner air movement.

The main drawback for nuclear power is that the development process is slow. The benefits are that in addition to being safe, it’s also a relatively cheap power source, says Sarah Harper for Triple Pundit.

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

• Market Vectors Nuclear Energy (NYSEArca: NLR) up 25.9% year-to-date

• iShares S&P Global Nuclear Energy Index (NYSEArca: NUCL) up 42.1% year-to-date



• PowerShares Global Nuclear (NYSEArca: PKN) up 30.8% year-to-date

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.

Nuclear energy is becoming a clearer alternative energy source, however, the question remains on where to put the hazardous waste from the new proposed nuclear plants. The nuclear movement helps address the carbon dioxide problem contributing to global warming, and will help lessen the use of fossil fuels, reports Daniel Terdimen for CNET News.

The so-called cap-and-trade program proposed by President Barack Obama is not enough to offset carbon emissions, some feel. Although the energy bill is a start, there is no solid data on the legislation’s ultimate economic impact, reports The News & Advance.

The final bill that passed the House 219-212 did make passing reference to nuclear energy, but many claim the bill is sorely lacking a definitive role for nuclear energy. Conservation, wind generation, biomass generation and any other niche source of power simply will not meet the nation’s growing needs, some feel.

• Market Vectors Nuclear Energy (NLR): up 5.6% year-to-date

• PowerShares Global Nuclear Energy (PKN): up 8.8% year-to-date

• iShares S&P Global Nuclear Energy Index (NUCL): up 17.8% year-to-date

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

• Could Utilities’ Nuclear Deal Be the Push ETFs Need?
• Why Nuclear ETF Is Powering Up
• Can Nuclear ETFs Overcome Industry’s Price Tag?
• How Nuclear Energy Industry and ETFs Are Overcoming ‘Toxic’ Reputation

There are four utility companies that have been selected to receive $18.5 billion in federal financing over the next few years to build the next generation of nuclear reactors. The first steps are set to begin in 2011, and the plants could be online by 2015. Rebecca Smith for The Wall Street Journal reports that UniStar Nuclear Energy, NRG Energy Inc. (NRG), Scana Corp. (SCG) and Southern Co. (SO) are expected to share a set of loan guarantees to be awarded by the Energy Department.

The companies have selected sites for the reactors and are at the forefront the receive licenses to build and operate them. Bear in mind, the government hasn’t formally announced its picks, but energy company officials and reactor vendors have identified the likely winners.

Nuclear power is an Energy Agency  priority, and reduced emissions of carbon dioxide are likely to cut down on greenhouse gas problems. The plants are facing opposition, because of technical, regulatory and profitability issues.

The electrical industry stands to play a role in the development, and the first companies that can build new nuclear reactors will have a big leg up in delivering electricity with low carbon emissions. That could give them a major financial advantage if Congress passes legislation that caps emissions of carbon dioxide.

• Market Vectors Nuclear Energy ETF (NLR): up 14.6% year-to-date

• PowerShares Global Nuclear energy (PKN): up 15% year-to-date

• iShares S&P Global Nuclear Energy Index (NUCL): up 23.2% over three months

• iShares Dow Jones U.S. Utilities (IDU): down 1.9% year to-date; SO is 6.1%

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

Delegates in Rome were opposed to North Korea’s reported nuclear test, as the South Korean and Japanese representatives calling on Pyongyang to use nuclear energy for peaceful purposes.

Diversification of energy sources will help keep prices of energy stable and contribute to a quicker recovery. Meanwhile, China has 11 nuclear reactors in operation at six power plants, all on the coast, making up 2% of the country’s energy needs. Rumor has it that 22 reactors, double the number now in operation, are already under construction, reports The Australian for The Wall Street Journal.

The surge in coal-fired power plants should slow from 2011, as the nuclear power plan is under revision in China. In the meantime, however, China is set to install more than 50 gigawatts of new coal generation this year and in 2010.

• Market Vectors Nuclear Energy (NLR): up 20.5% year-to-date

Safety and disposal issues aside, the high cost of building a nuclear reactor is what is at the forefront of the news. Mark Williams for the Associated Press reports that the shift away from fossil fuels will be met with the building of more nuclear reactors. Cost is going to be a factor at every stage of the building process. For example, this month in Missouri, the first of the next generation reactors was put on hold because of the $6 billion price tag.

Already, some states have altered laws so that consumers are actually paying for the bill of the cost to build a reactor to avoid problems such as the Missouri incident. The cost of labor, raw materials and technology have all grown exorbitantly. Because much of the new technology and building techniques are untested in the United States, construction will be lengthier, more expensive and riskier, according to a report issued by Standard & Poor’s.

So far, residential electricity rates have risen 1%-3% annually for AmerenUE customers, with an increase of up to 40% total. For now, low-prices and clean, carbon-free energy do not go together. Despite legislation, many consumers will see the construction costs on their energy bills.

The cost of reactors is just one of the issues the nuclear energy industry is faced with. Although interest has definitely increased, nuclear energy also has a reputation that precedes it.

• Market Vectors Nuclear Energy ETF (NLR): up 7.5% year-to-date

• PowerShares Global Nuclear Energy (PKN): up 2.6% year-to-date

There has been a huge turnaround over the past few decades and the perception of nuclear power and energy is no longer so negative.  Many believe that this shift has been caused by the industry’s focus on safety, safety measures and disposal of hazardous material, states Danielle Karson for Marketplace.

What’s amazing is that in a Gallup poll, 60% of Americans stated that they support nuclear power.  Additionally, the once frowned upon source of power accounts for 20% of the nation’s energy.  To put in perspective where the industry is going, 17 companies have applied for permits to build new nuclear plants.

Keep in mind that it isn’t all sunshine and smiles in the industry.  The costs of building new plants is prohibitive and disposing and storage of radioactive waste is far from easy.  To add to these problems, President Barack Obama has scaled back funding a nuclear plant in Nevada, which indicates that it isn’t one of his top priorities at the moment.

If you want to grab some exposure, take a look at the Market Vectors Nuclear Energy ETF (NLR), which is down 10% year-to-date, but has crossed its 50-day moving average.

Kevin Grewal contributed to this article.