“Winter is approaching. There have been more discussions about whether coal will be lucky again. Natural gas inventory is falling short compared to the historical average. However, coal demand may not increase as much as last year. A milder winter is expected. Also, there’s lower coal-fired capacity. A milder winter may cause normal electricity demand,” according to Market Realist.
Investors are either undeterred or fiercely loyal to KOL. Despite being down almost 14% this year, the ETF has pulled in $20.7 million in new assets, a healthy percentage of its current assets under management tally of $153.2 million. KOL slid 8.6% during the third quarter, but that did not keep investors from pouring $6.7 million into the ETF. [Coal ETF Faces Weak Fundamentals]
Coal companies also took a hit after demand for metallurgical coal – coal used in production of metals like steel – faltered on slowing growth in China. In May, coal stocks weakened after Stanford University became the first major university to divest from fossil fuel producers perceived as major polluters.
Market Vectors Coal ETF
