Although natural gas prices are volatile and remain depressed, exposure to the production of that commodity has helped Consol sharply outperform KOL over the past two years. In that time, the ETF is off almost 43%, but shares of Consol are down just 6%. [Coal ETF Tries to Emerge From Abyss]
A spin-off of Consol’s gas assets could mean a short-term pop for KOL. As for where a publicly-traded Consol gas spin-off could make an ETF home, the Guggenheim Spin-Off ETF (NYSEArca: CSD) and the First Trust ISE-Revere Natural Gas Index Fund (NYSEArca: FCG) are legitimate possibilities.
Market Vectors Coal ETF
ETF Trends editorial team contributed to this post.