Market Vectors Coal ETF (NYSEArca: KOL) was down more than 5% on Wednesday after President Barack Obama won a second term in the White House.

The selling could reflect traders unwinding positions they had built in coal stocks in anticipation of a Mitt Romney victory in the election.

The coal ETF was one of the top-performing ETFs in the weeks leading up to the election. “I like coal,” Romney said during the first presidential debate. [Coal ETF Rallies]

PowerShares Global Coal ETF (NasdaqGM: PKOL) also dropped over 5% in afternoon trade Wednesday.

Top holding Peabody Energy (NYSE: BTU) was down 7% on fears Obama will impose more environmental regulations on the sector, Reuters reports.

“(The drop is) 100 percent related to election results,” said Eric Green, senior managing partner at Penn Capital Management, in the report.

Market Vectors Coal

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