VanEck Rare Earth/Strategic Metals ETF

REMX

Market cap $2.07B

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.

VanEck Rare Earth and Strategic Metals ETF earns a Buy rating as a portfolio diversifier targeting rare earth element exposure. REMX offers concentrated, liquid exposure to 26 REE-related equities, balancing regional allocations across Australia, China, and the US. Secular demand for REEs outside China, supply chain concerns, and strategic investments—such as in MP Materials—support the investment thesis.

NEW YORK--(BUSINESS WIRE)--VanEck announced today the 2025 annual distributions per share for its VanEck equity exchange-traded funds.

VanEck's rare earth metals ETF invests in businesses that are vital to the modern world. With 30 investments, it offers a quick and diversified way to invest in rare-earth metals.

I am upgrading VanEck Rare Earth and Strategic Metals ETF from hold to buy, citing renewed strategic momentum. REMX benefits from U.S. government investment in MP Materials and potential U.S.-Brazil rare earth cooperation, reducing reliance on China. Brazil's 23% share of global rare earth reserves positions REMX for upside if U.S. access improves, especially for robotics and AI.

REMX jumps as global demand for rare earths surges and investors eye Arctic resources amid rising geopolitical interest.

Top ETFs that soared last week despite market swings included shipping (BWET), lithium miners (LITP), crypto bear (REKT), biotech (BBC) and rare earths (REMX).