Jin Hua Gong Mine, Datong, Shanxi, China (Photo credit: Wikipedia)
KOL- What We Should Know?
According the recent reports, Coal exchange traded funds or coal ETF (KOL) has experienced a better growth than expected by the market experts. The expected theatrical forecast for KOL by market vectors KOL is reported as positive, especially in the thermal coal. This rise is purposely noticed because of the rising demand of thermal coal in the future. And this rise is demand is directly proportional to the coal ETF.
The high graph helped to raise the coal focused fund in a quicker way. But, the investors must learn some tips before they jump into the coal ETF market.
If any investor wants to invest in coal, must look for the global exposure of coal because only investing in the US KOL market might not be proved very beneficial since more than 50% of the coal is derived from China and Indonesia. The top holding countries including Indonesia and China cannot be entirely accounted for the job either. Thus the interest investors must have the idea about the market vectors of coal ETF. Otherwise they would be engaged in such KOL industry which won't help a lot. In order to be on a safe side, a legit idea of exposing coal globally must be adopted.
For instance, the Chinese or Indonesian KOL may face a decline in result of government collisions and in this case, the investor will definitely experience an undesirable loss, the KOL can even lag. Therefore, the investors must not be controlled by the manipulative implements, but by their interests.