Coal exports represent “crucial dollars for an industry trying to stabilize itself after nearly a decade of declining prices, expanding competition from natural gas and wind and solar energy, and bankruptcies. Domestic coal-fired power plants continue to close despite promises of regulatory relief by the Trump administration, making the exports all the more critical,” according to the New York Times.
KOL, which is nearly 10 years old, tracks the MVIS Global Coal Index. That index “is intended to track the overall performance of companies in the global coal industry which includes coal operation (production, mining, and cokeries),transportation of coal, production of coal mining equipment as well as from storage and trade,” according to VanEck.
The ETF holds 27 stocks and has nearly $96 million in assets under management. KOL could be worth considering as a trade over the short-term because the materials sector is historically a stronger performer in December and January.
For more information on the Materials market, visit our Materials category.