VanEck Rare Earth/Strategic Metals ETF

REMX

Market cap $3.13B

Japan's $36B U.S. investment targets energy, exports and minerals. ETFs like XLE could ride the industrial boost from this landmark pledge.

NEW YORK--(BUSINESS WIRE)--VanEck is today celebrating a number of wins in the 2026 With Intelligence Mutual Fund & ETF Awards.

VanEck Rare Earth and Strategic Metals ETF is downgraded to Hold due to high valuations and a surprisingly small global rare earths market. REMX's portfolio trades at a P/E of 32.16 and P/S of 3.25, well above mineral industry averages, despite rare earths' critical importance. Geopolitical tailwinds and rising rare earth prices have fueled strong performance, but potential U.S. stockpiles and diversification could deflate valuations long-term.

Trump's $12B Project Vault to stockpile rare earths lifts MP Materials and brings critical minerals and clean energy ETFs into focus.

Someone asked me the other day, “What are the hot themes for the new year?”  To start the year, we have seen some pretty impressive outsized performance from several key investment themes.

A fresh push from Washington to secure access to critical minerals could bring fresh investor interest across the U.S. ETF market.

The VanEck Rare Earth and Strategic Metals ETF has surged 109% over the past year but remains highly concentrated and volatile. REMX's exposure to Chinese issuers creates alignment risks with U.S. policy goals, complicating the investment case amid geopolitical shifts.

The materials sector doesn't get a lot of love. After finishing last among all 11 S&P 500 sectors in 2024, it mustered a 10% gain last year, which trailed the broad market.

In 2025, top-performing exchange-traded funds (ETFs) often capitalized on an angle related to innovation or to metals. With demand for data centers to power AI applications surging, funds focused on the infrastructure and materials necessary to fuel this industry thrived.

Rare earth metal stocks were among the hottest investment themes earlier this year, only to fade from the spotlight in recent months. Now, just as the sector has slipped out of the investor zeitgeist, prices have staged a decisive technical breakout.