Energy investors can use coal funds to gain diversified exposure to the industry and generate income with a single purchase. Master limited partnerships (MLPs) own coal resources and lease them to mining companies, passing on the proceeds directly to investors. Exchange-traded funds (ETFs) track the combined performance of several companies whose main operations are in the coal sector.
Additionally, you can use coal indexes to get an overall gauge of how the industry is performing. The two most-watched indexes for the coal sector are the Stowe Global Coal Index (COAL) and the Dow Jones U.S. Coal Index (DJUSCL).
The COAL tracks 36 companies with a total market cap of $196.2 billion, with the average being $5.5 billion. You can see its top ten constituents in this table.
| Company | Ticker | Country | Weight (Percentage) |
|---|---|---|---|
| China Shenhua Energy | HK: 1088 | China | 8.4% |
| Joy Global | NYSE: JOY | United States | 8.3% |
| China Coal Energy | HK: 1898 | China | 8.2% |
| Peabody Energy | NYSE: BTU | United States | 7.6% |
| Consol Energy | NYSE: CNX | United States | 7.5% |
| Yanzhou Coal Mining | NYSE: YZC | China | 4.6% |
| Alpha Natural Resources | NYSE: ANR | United States | 4.6% |
| Inner Mongolia Yitai | HK: 3948 | China | 4.5% |
| Adaro Energy | Jakarta: ADRO | Indonesia | 4.4% |
| Walter Energy | NYSE: WLT | United States | 4.4% |