After a year of poor demand and weak economic growth, coal related exchange traded funds are beginning to heat up as opportunists jump at the cheaper valuations.
The Market Vectors Coal ETF (NYSEArca: KOL) and the PowerShares Global Coal Portfolio (NYSEArca: PKOL), which both track global coal producers, have gained over 4% so far this quarter. KOL has declined 21.0% and PKOL has dropped 16.4% year-to-date. [ETF Chart of the Day: Coal]
The Market Vectors Coal ETF tracks 35 coal producers. The fund’s top country allocations include the U.S. 38.3%, China 18.4%, Canada 10.3%, Indonesia 10.2% and Australia 10.1%. KOL has a 0.59% expense ratio.
The PowerShares Global Coal Portfolio follows 27 coal suppliers. Top country allocations include U.S. 32.3%, China 24.4%, Indonesia 17.4% and Australia 10.7%. PKOL has a 0.75% expense ratio.
While coal prices have suffered this year, the energy source is still a major component in the global power system, writes Eric Dutram for Zacks.