ETF Spotlight: Market Vectors Coal Producers

Aug.10.11 | About: VanEck Vectors (KOL)

ETF Spotlight on Market Vectors Coal (NYSEARCA:KOL), part of an ongoing series.

Assets: $530 million.

Objective: The Market Vectors Coal fund tries to reflect the performance of the Stowe Coal Index, which tracks global companies engaged in the coal industry.

Holdings: Top holdings include: China Shenhua Energy Co. 9.29%, Joy Global Inc. 8.40%, Consol Energy Inc. 8.21%, Peabody Energy Corp. 8.19% and Alpha Natural Resources Inc 6.60%.

What You Should Know:

  • The ETF is sponsored by Van Eck Global.
  • KOL has an expense ratio of 0.59%.
  • Sub-sector allocations include: coal mining and production 68.3%, coal mining equipment 15.6%, coal power generation 10.2%, coal technology 5.6% and coal transportation 0.3%.
  • Country allocations include: U.S. 55.4%, China 16.2%, Indonesia 10.8%, Australia 8.4%, South Africa 2.09%, Canada 2.6%, Hong Kong 2.1%, Singapore 0.9%, Philippines 0.59% and Japan 0.2%.
  • The fund is down 16.12% in the past month, down 15.06% in the last 3-months, down 14.52% year-to-date, but up 15.07% over the past year.

The Latest News:

  • Coal-related stocks followed the broad market sell-off, reports Alexander Schachtel for Wall St. Cheat Sheet.
  • KOL has mirrored almost double the losses of the Dow and S&P during last week’s trading.
  • Poor earnings reports and plummeting energy prices have pulled down coal company stocks as future demand becomes cloudier over the near-term.
  • Walter Energy (NYSE: WLT) was one of the more notable losers after reporting disappointing quarterly results. Alpha Natural Resources (NYSE: ANR) also reported lower-than-expected earnings.

Market Vectors Coal

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Max Chen contributed to this article.

Disclosure: None