With an expense ratio of 0.56% and a yield of 2.03%, the VanEck Rare Earth and Strategic Metals ETF (SYM: REMX) is an exchange traded fund launched and managed by Van Eck Associates Corporation. It invests in public equity markets of global region.
It invests in stocks of companies operating across materials, metals and mining sectors. It invests in growth and value stocks of companies across diversified market capitalization. It seeks to track the performance of the MVIS Global Rare Earth/Strategic Metals Index.
Its last dividend payment of $0.9971 was paid out on December 24, 2024.
Some of the fund’s 29 holdings include Sociedad Quimica y Minera de Chile, Lynas Rare Earths, MP Materials, Albemarle, Pilbara Minerals, and Lithium Americas Corp.
Here’s why you may want to bet on REMX now.
China just suspended rare earth exports to the US in retaliation to the trade war.
In fact, as noted by The New York Times:
“The Chinese government is drafting a new regulatory system for exports, and while the policies are being framed, the shipments of the magnets, essential for the manufacturing of almost everything ranging from cars to missiles, have been halted at many Chinese ports.”
That has the potential to make a real mess for us. “The move, which affects exports to all countries, is the latest demonstration of China’s ability to weaponize its dominance over the mining and processing of critical minerals,” says LiveMint.com.
All of which creates more opportunity for the stocks held by the REMX ETF.
In short, with China’s rare earth dominance, and its recent decision to curb rare earth supply to the U.S., the country desperately needs a new source. That’s why the REMX ETF could rally higher thanks to its investments in leading rare earth companies.
Remember, “China’s dominance of the rare earths supply chain has emerged as among its most potent tools in a renewed trade war with the United States president. The minerals – used to power everything from iPhones to electric vehicles – are vital components for the kinds of advanced technology that will define the future,” as noted by CNN.com.
We also have to consider that the consequences of the current situation – depending on how long it could last – are severe. Until the trade war and rare earth export issues are resolved, related stocks and demand for new sources of rare earth should explode higher.
