VanEck Rare Earth/Strategic Metals ETF

REMX

Market cap $2.18B

The VanEck Rare Earth and Strategic Metals ETF offers diversified exposure to 38 global rare earth and strategic metals companies, with a strong China tilt. REMX exhibits high annualized volatility (~50%) and turnover, making it unsuitable for conservative investors who dislike churn. Intermediate-term headwinds include lithium market weakness, USD appreciation, and technical bearishness, despite a compelling long-term rare earths narrative.

It's not hard to see why investing in rare-earth metals is a long-term investment theme. Rare-earth metals are 17 metallic elements with unusual magnetic, optical, and conductive properties that make them indispensable to modern technology, including:

China's October 2025 expansion of rare earth export controls continues to ripple through equity markets eight months later.

Recent research from the IMF says that bonds might not be a good way to diversify in case of a stock market downturn. Buying precious metals and rare-earth ETFs could add commodities to your portfolio.

America's rare earths problem is often framed as a mining problem.

Family offices poured more than $3 billion into tech, media, and telecom companies. But materials attracted the most capital—$4.8 billion.

China's dominance in critical mineral refining is becoming an increasingly important geopolitical and economic risk. Market capitalizations across the sector could create unusual opportunities.

AI, Alternative Energy and Commodity stocks are all leading this market as a confluence of economic developments drive growth and constrain supply.

The VanEck Rare Earth and Strategic Metals ETF (REMX) offers targeted exposure to the escalating geopolitical and supply chain battle over rare earths between the U.S. and China. REMX is best suited as a 5% satellite holding in aggressive portfolios, given its high concentration, lithium exposure, and asymmetric China-related risks. Massive U.S. initiatives like Project Vault ($12B) and FORGE are reshaping the Western rare earth supply chain, but processing bottlenecks and Chinese dominance persist.

Japan Prime Minister Sanae Takaichi is set to hold talks in Canberra ​on Monday with Australian counterpart Anthony Albanese, ‌at which energy security and rare earths cooperation are likely to be high on the agenda.