Keeping Up with Exchange Traded Funds

Auto Sector to Spend $47 Billion to Meet MPG Rules

The Obama ETF Portfolio

ETF Investing Alongside the New Administration

With Chrysler in bankruptcy and General Motors trading under $2 per share, the Obama administration ordered stricter fuel goals that will require the ailing industry to invest $47 billion that it doesn't have.

The new rules require auto makers to increase the fuel economy of automobiles sold in the U.S.

Plans for Medicare Pressure Health Care Sector

The Obama ETF Portfolio

ETF Investing Alongside the New Administration

Medicare changes announced by the Obama administration caused a significant decline in health care stocks.

The new approach calls for elimination of private sector participation in medicare plans, effectively eliminating $175 million of revenue for the industry.  Plan management will move to government bureaucrats who can administer "more efficiently".

In reaction, the Health Care Select Sector SPDR Fund (XLV) has declined 17% since the Obama budget speech.

XLV's top holdings include Johnson & Johnson, Pfizer and Abbot Labs.

Obama's Wind Energy Plan and ETFs

The Obama ETF Portfolio

ETF Investing Alongside the New Administration

Alternative energy, and in particular wind energy, was a major platform for the Obama campaign and the new president is keeping his promise by including incentives in the current stimulus plan.  However, before jumping into wind energy investments, take a closer look at the plan details.

Wind Energy Plan ignores Equipment Manufacturers

The wind energy plan in its current form provides tax breaks to companies that build alternative energy projects but ignores companies that manufacture equipment such as wind turbines and electric-system upgrades.  Since most current manufacturers are in Asia and Europe, the tax credits are likely to benefit companies and create jobs

The Obama ETF Portfolio - A First Look

The Obama ETF Portfolio

ETF Investing Alongside the New Administration

One of the new president's highest priorities is to create millions of jobs by spending hundreds of billions of dollars.  The spending promises to be concentrated in a few sectors and will be big enough to be an engine of growth for companies in those sectors.

This series takes a closer look at the stimulus plan and models an ETF portfolio that is best positioned to benefit from the avalanche of new spending.

Obama's New Deal

Budget experts estimate the economic recovery package will cost $600 billion over 2 years  and could approach $1 trillion in total.  Mr.