What Coal ETF would you own?

Question

What Coal ETF would you own?

Answer 1

I think the coal EFT of choice is KOL.   If you want to invest in an individual coal stock Peabody *BTU) or Arch Coal (ACI).  I would think Patriot Coal (PCX) is extended.  It operates the Appalachian coal propeties purchsed from Peabody.  I am not sure the typical investor realizes the extent of potential legacy cost that face PCX.  Peabody has significantly reduced it legacy costs and now has some important operations in Australia.  The coal stocks have been running; but I still think you could wait for a pullback in the names and in the ETF which is KOL.  In fact, I don't think there is another coal ETF than KOL.  Not only the best but the only one!

Answer 2

None, because coal is in frothy and bubble area.  The thing driving coal stocks in met coal, which is a small portion of the overall coal market.  Having said that, if you want coal exposure, buy diversified mining companies which will provide you returns from other commodities as well.  E.g., BHP, AAUK, RIO.