The Market Vectors Coal ETF (NYSE: KOL) declined yesterday on heavy volume, but the lone equity-based exchange traded fund dedicated to moribund coal equities did not hit a new low. Still, KOL has lost nearly two-thirds of its value over the past two years and slumping demand for the commodity is hampering other ETFs beyond KOL.
For example, as KOL has plunged 56.6 percent over the past year, the iShares Transportation Average ETF (NYSE: IYT) has tumbled more than 23 percent over that period. Figuring out the iShares Transportation Average ETF's coal conundrum is not difficult.
IYT, which tracks the widely followed Dow Jones Transportation Average Index, devotes 21.5 percent of its weight to railroad stocks, making that group the ETF's second-largest industry allocation. U.S. railroad operators have experienced declining shipping volumes and ...
/www.benzinga.com/news/16/02/6230659/the-coal-conundrum-for-transportation-etfs alt=The Coal Conundrum For Transportation ETFs>Full story available on Benzinga.com
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