This the coal ETF. You would think that coal are a thing of the past. But don’t forget, many modern power plants use coal to generate electricity. For the production of steel also coal is needed.
Coal is not mined anymore from under the ground mines, that has gotten too expensive. With modern coal mines the coal is available at the surface, they just need to scoop it up and transport it to destinations around the world.
The coal price is being made through supply and demand. As there are no major supply issues, it is abundant available, it will be demand that is driving prices. Another way of putting it is to say that it is the global economy that is the driving force here behind this coal ETF.
When we are talking about power plants that are using coal we also have to keep in mind that alternative energy is on the wake so we cannot expect this industry to need more and more coal in the future.
All in all, there will be demand for coal but do not expect much price frenzies in this market. On the other hand, it may be interesting to invest in coal companies. It is an old industry and we do not expect new comers to enter the market.
VanEck Vectors Coal ETF
This VanEck Vectors Coal ETF is tracking the MVIS Global Coal Index. About 27 companies are included. China is weighed at 25% here and the US is second with a share of 22%. Canada is third with 11%.
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VanEck Vectors Coal ETF info:
ETF provider: VanEck Vectors ( Van Eck Global)
Exchange: NYSE Arca