Coal ETF Could Rebalance On Rio Tinto IPO (KOL)
The Market Vectors Coal ETF (NYSE: KOL), a favorite of the ETF Professor, may add a new holding if Rio Tinto's (NYSE: RTP) IPO of its U.S. coal business, Cloud Peak Energy, proves successful. Cloud Peak Energy is expected to begin trading on Friday on the NYSE under the ticker "CLD."
According to data from Energy Information Administration, Rio Tinto America is the second-largest coal producer in the U.S. behind Peabody Energy (NYSE: BTU). That means Cloud Peak's production may prove too big for KOL too ignore.
With the strength in the coal sector, KOL remains an ETF to watch and Cloud Peak could prove to be one of 2009's better IPOs. Don't be surprised if Cloud Peak makes its way into KOL sooner rather than later.
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