High Flying ETF Comes Down a Notch

In his recent Investors Business Daily article, “A Steep Dive in Coal Batters Highflying ETF”, Trang Ho discusses the recent plunge in Coal ETFs.

The Market Vectors Coal ETF (KOL) dropped 13% last week after widespread selling of the fund. European spot prices for thermal coal was a major reason for the decline. Double digit losses from Arch Coal (NYSE Arca: ACI), Consol Energy (NYSE Arca: CNX), and Massey Energy (NYSE Arca: MEE) also had an impact on the decline. KOL had been been up 47% at its peak and had been one of the hottest ETFs this year.

Gary Gordon, president of Pacific Park Financial, believes volatility makes metals and mining too risky for most investors. He thinks the best course of action is to buy a broad global materials ETF in order to invest in this sector.

You can read the entire article here.

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