Worst: Market Vectors Coal ETF
A pair of words you don’t want to hear if you’re invested in companies related to a particular commodity: “crippling oversupply.” But that’s exactly what’s facing coal — and subsequently, coal miners — as new operations have popped up across the globe without any meaningful rebound in demand.
Patriot Coal (PCXCQ) has already been claimed by the worsening coal market, filing for Chapter 11 bankruptcy protection in the middle of last year — and things have only gotten worse for coal prices since then.
Market Vectors Coal ETF (KOL) — a collection of miners and other related companies — has been understandingly pummeled, including miners Yanzhou Coal Mining (YZC, -58%) and Peabody Energy (BTU, -45%), as well as mining equipment manufacturer Joy Global (JOY, -45%). KOL charges 0.59% in expenses.