KOL’s leverage to the rebound in steel stocks comes by way of the ETF’s exposure to producers of metallurgical coal, the grade of coal used to produce steel. U.S. metallurgical coal producers found among KOL’s 36 holdings include Consol Energy (NYSE: CNX), Arch Coal (NYSE: ACI), Alpha Natural Resources (NYSE: ANR) and Walter Energy (NYSE: WLT).
Those stocks combine for 8.8% of KOL’s weight, according to Market Vectors data. The ETF also allocates 5.7% of its weight to Peabody Energy (NYSE: BTU), which has significant exposure to international metallurgical coal demand through its Australian operations.
Investors appear to be betting on more upside for KOL as the $180.3 million ETF has added $5.7 million in new assets over the past week and $8.6 million since the start of the third quarter.
Market Vectors-Coal ETF
