The exchange traded fund (ETF) world and the mutual fund industry are competing for investors left and right, and the commodity sector is no exception. The choice for exposure is now readily available in both forms. But which is superior?

One of the questions it comes down to is whether you prefer active or passive management. The differences between mutual funds and ETFs still exist when considering funds that cover the commodities space. (Why mutual funds want in on ETFs).

Exchange traded funds ((ETFs)) that track or hold gold and silver have seen a wave of inflows in assets. But do you know the tax responsibilities that come with these ETFs?

The financial fiasco is still too clear in our memories and some of the inimical legacies are spilling over into the regional banking industry. But, regional banks, along with related exchange traded funds (ETFs), may get a helping hand from the government.

Let’s start with the bad news.

After a slew of measures and policies that pumped world economies full of money, a lot of cash found its way into Asia, and Hong Kong is not pleased. Officials feel that Hong Kong’s economy and related ETF have become artificially distended by international investors.

Norman Chan, monetary authority chief executive in Hong Kong, has suggested that low interest rates and quantitative easing of U.S. monetary policy has allowed people to borrow at low cost and reinvest into Hong Kong’s economy, which is consequently fueling an asset bubble, reports Alex Frangos for The Wall Street Journal. With Hong Kong’s economy in the early stages of recovery, some observers are warning of dangerous bubbles seen forming in property and stock prices.

It’s that time of year again. Millions of Americans will fork over their hard-earned cash and stand in long lines at the airport, all to visit their families and celebrate the holidays. But will ETFs reap the rewards of the increased air traffic?

Holiday travel is expected to be down this year for the first time in a decade. Around $4.05 billion is expected to be lost, but it may not be for the reasons you’d think. Although the economy is still on shaky ground, many travelers may also be planning to stay home because of the H1N1 flu virus, reports Meeting News.

ETF Spotlight on SPDR S&P Emerging Europe (NYSEArca: GUR), part of a weekly series. Assets: $175.3 million

Holdings: The largest holdings include Gazprom (OGZPY.PK), 18.1%; Lukoil Oil Company (LUKOY.PK), 9.6%; Rosneft (RNGZY.PK), 5.8%; and Sherbank Rossii, 5.2%.

Although many are worried about inflation and its effects on exchange traded funds, deflation should be on investors minds as well.

In an interview with Heesun Wee of Tech Ticker, Gary Shilling says he believes deflation is inevitable because of technological advances boosting productivity, globalization and weak demand for U.S. consumer goods. He suggests that these these factors could lead to higher inventories and cut about 1.5% off real U.S. GDP growth each year.

The IQ ARB Merger Arbitrage ETF (NYSEArca: MNA) launched this week, and gives investors another way to play the anticipated increase in merger and acquisition activity in the coming year.

As some are beginning to express skepticism that the rally in gold prices and exchange traded funds (ETFs) couldn’t possibly last, gold goes ahead and touches on another new record.

Gold futures hit new record highs in trading Wednesday, soaring above $1,150 an ounce on weakness in the dollar and gold’s appeal as an “alternative currency.” Matt Whittaker for The Wall Street Journal says that in addition to seasonal jewelry buying, gold’s demand is feeding on itself. As the price goes higher, it entices more investors to buy bars and coins for themselves. (Read about the new gold miners ETF).

United States Commodity Funds recently won regulatory approval for its newest addition: a 12-month natural gas fund. The fund is expected to begin trading today.

The U.S. 12 Month Natural Gas Fund (NYSEArca: UNL) has gotten the green light from regulators to issue about 30 million shares, which will purchase natural gas futures for delivery over the next 12 months. Asjylyn Loder for Bloomberg reports that it will sell the near-month contract as it approaches expiration and replace it with a contract for delivery in 12 months.

The ETF comes from U.S. Commodity Funds LLC, which also manages the popular $3.5-billion U.S. Natural Gas Fund (NYSEArca: UNG) and the $1.96-billion U.S. Oil Fund (NYSEArca: USO).

ProShares has announced that there will be no capital gains distributions on its 77 leveraged and inverse ETFs as well as its fixed-income ETFs in 2009.

A few factors affect the number of capital gains distributions to be paid out at years’ end by ETF shareholders. Factors include the path of the underlying index during the period, the size and timing of asset flows.

Brazil’s domestic industries are showing a quick rebound. The economy, along with related ETFs, may be only just beginning to reflect a recovery in the emerging market.

• With a surge in domestic consumption bolstered by optimistic Brazilians, low unemployment and increased wages, Brazil’s economy is projected to grow 9% for the fourth quarter, comments Martin Denholm for Investment U.

• For the full year, Brazil’s GDP is projected to fall between 1% and 1.5% after a major blow to its export market, but the market has shown signs of revival.

• Deputy Trade Minister Welbar Barral expects foreign direct investment to grow 33% in 2010. Moody’s already brought Brazil’s credit rating to investment grade back in September.

• Labor Minister Carlos Lupi stated that Brazil’s economy added 230,956 payroll jobs in October, bringing the number of jobs added to more than 1 million this year, reports Isabel Versiani for Reuters. He also expects the number of new jobs will rise to 2 million in 2010.

• Lupi projects the economy will grow 2% in 2009 and 7% to 8% in 2010 while analysts estimate growth of 0.2% in 2009 and 5% in 2010.

• iShares MSCI Brazil Index (NYSEArca: EWZ): up 121% year-to-date

ETF provider and bond giant PIMCO launched a new fund yesterday that’s billed as being a “higher-yielding alternative to money market funds.”

PIMCO Enhanced Short Maturity Strategy Fund (NYSEArca: MINT) is an actively managed ETF that will primarily invest in short duration investment-grade debt securities.

India’s economy has made such strides this year that it may be the first to begin scaling back its stimulus measures. These definitive signs of recovery in the emerging nation could continue to spill over into the strong performance of its exchange traded funds.

The Indian government hinted at winding up fiscal stimulus initiatives and cutting back on loose monetary policies, writes Arun Prabhudesai for Track.in. Demand has been on the rebound and the benchmark inflation index has also risen.

After a year of robust trading in the commodities market, regulatory action has been threatened on select ETFs that are seen as problematic. The scrutiny has highlighted the differences between certain types of funds, giving investors an education.

The spike in investor interest in funds like United States Natural Gas (NYSEArca: UNG), PowerShares DB Commodity Index Fund (NYSEArca: DBC), PowerShares DB Agriculture Fund (NYSEArca: DBA) has resulted in creation halts and strategy reconstruction as the Commodity Futures Trading Commision (CFTC) scrutinizes the industry, writes Don Dion for TheStreet.

Despite 2009 being the first year since 1981 that global energy use fell, the future of crude oil exchange traded funds (ETFs) may look promising as the industry sees a flurry of renewed activity.

According to this year’s 2009 volume of the International Energy Agency’s (IEA) World Energy Outlook, the recession and financial crisis provided us a small respite from our insatiable fossil fuel demand and rising oil prices, remarks Dave Fessler for Investment U. However, the break in oil prices is forecast to end this year and a new growth pattern may start. The IEA projects that world consumption will grow 1% per year till 2030. (Oil ETFs are not over yet).

The solar energy sector might not be at full strength just yet, but its prospects are looking much better than they were last year. Now may be the time to consider the sector’s exchange traded funds (ETFs) as an opportunity.

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.

Many experts have spoken on the benefits of dollar cost averaging, also known as DCA. But what is it, and can you do it with your exchange traded funds (ETFs)?

Carlos Sera of Financial Tales defines dollar cost averaging as when one commits to invest a certain dollar amount or percentage of salary to an investment program, usually in a mutual fund or exchange traded fund (ETF), over a consistent period of time. A good example is a traditional 401(k) plan to which an employee allocates 5% of a monthly paycheck. Sera has several tables illustrating how DCA works. (More on retirement).

Gold prices have only continued to gain as investors look to hedge possible inflation and a weak dollar. The run has had a nice side effect, too: it’s boosted the prices of other metals and given their related ETFs a lift.

The reasons for gold’s climb to record prices haven’t changed: a weaker dollar, inflation worries and mixed investor sentiment seem to rule the markets lately. But as gold marches forward, other metals have hitched a ride on its coattails. Platinum and palladium have hit 12-month highs, and analysts think it could continue if gold remains strong.