Sprott Rare Earths Ex-China ETF

REXC

Valor de mercado US$ 40,4 mi

It's no secret that countries like the United States have been looking to decouple from China's dominant position in the rare earth supply chain as of late. Part of this is due to the vast number of industrial applications that rare earths bring to the table.

ETF launches have officially gone parabolic. Just a little more than halfway through the year, product development is already pacing to leave last year's record in the dust.

In an increasingly tense world, defense spending is now shifting from a routine line item into a critical national priority.  Key Takeaways: Defense spending is on the rise across the globe, and ongoing geopolitical tensions may help keep spending up.

Many sought-after metals have been logging significant price growth in recent months, and lithium is no exception. Key Takeaways: The price of lithium did quite well in August, as did the Sprott Lithium Miners ETF (LITP).

Advisors and investors who have been keeping an eye on recent headlines are likely aware that rare earths are becoming increasingly valuable for countries across the globe.

If anyone was expecting U.S.-China tensions over critical minerals to simmer down any time soon, August has already put those thoughts to rest. Key Takeaways: The United States has announced $3 billion in new investments to support a variety of critical minerals and battery projects.

Traffic across ETFDB reveals a clear theme. Advisors and retail investors are seeking out active ETFs and looking to diversify away from mega caps.

Those who have been keeping an eye on geopolitical developments likely know that rare earths are an increasingly valuable resource for both China and Western countries. After all, tensions continue to escalate on this front.

It's well known at this point that the United States, among other countries, is looking to amp up its domestic supply chain when it comes to rare earth materials. Of course, this is playing out because China holds such a dominant position on the rare earths market, and trade relations between the U.S.

Is now the time to consider hopping back into silver investing? Sure, the precious metal may tend to be a bit more volatile than gold, but it is certainly offering a compelling value proposition for the months to come.