Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Market Vectors Coal ETF (AMEX: KOL ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Market Vectors Coal and see what CAPS investors are saying about the ETF right now.
Market Vectors Coal facts
| Inception |
January 2008 |
| Total Assets |
$376.8 million |
| Investment Approach |
Seeks to replicate the performance of the Stowe Coal Index, which tracks a global universe of listed companies engaged in the coal industry |
| Expense Ratio |
0.59% |
| Dividend Yield |
0.6% |
| 1-Year / 3-Year Annualized Returns |
(12.9%) / 24.2% |
| Top Holdings With High CAPS Rating (4 or 5 Stars) and Portfolio Weight |
Joy Global (Nasdaq: JOYG ) (8.4%)
Peabody Energy (NYSE: BTU ) (8.3%)
Alpha Natural Resources (NYSE: ANR ) (7.4%)
|
| Alternatives |
PowerShares Global Coal (Nasdaq: PKOL ) |
Sources: Morningstar and Motley Fool CAPS.
On CAPS, 95% of the 404 members who have rated Market Vectors Coal believe the ETF will outperform the S&P 500 going forward. These bulls include jerryguru69 and dcrednek.
A few months ago, jerryguru69 touched on the global tailwinds working in the ETF's favor: "Looked up stats for imports of coal for China and India: jaw dropping numbers. Mucho imports, and this trend will only increase in years ahead."
Market Vectors Coal, in particular, sports an expense ratio of 0.59%. That's lower than that of coal ETF alternative PowerShares Global Coal (0.75%).
CAPS member dcrednek elaborates on the bull case:
Yes, coal is becoming a smaller source of fuel from which we here in the US produce electricity. But we still use quite a bit of it. And we have lots of it in terms of reserves. And there are many countries in the world who rely on coal but don't have sufficient (or any) reserves. We are (or are near) the world's low-cost producer of coal, so a bad economy would make US coal more appealing to foreign buyers.
Lots of reasons to choose this commodity ETF as a hedge against US inflation/recession worries.
What do you think about Market Vectors Coal, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track the Market Vectors Coal? Add it to your watchlist.
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