Bankruptcies for Alpha Natural Resources (NYSE: ANR) and Arch Coal (NYSE: ACI) are coming as well, according to Barron’s. Arch and Alpha Natural combine for just half a percent of KOL’s weight while Walter is not one of the ETF’s 32 holdings. The combined share price for those three stocks is just 70 cents. [Not Much Hope for Coal ETFs]
The coal industry’s death spiral is affecting another ETF: The SPDR Metals & Mining ETF (NYSEArca: XME). Down 28.6% year-to-date, XME was one of the roughly 45 ETFs that hit 52-week lows yesterday.
It is easy to figure out why XME is struggling. The ETF allocates nearly 10% of its weight to coal and consumable fuels stocks.
Market Vectors-Coal ETF