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 VanEck Associates Corporation.
It invests in stocks of companies operating in the materials, metals, and mining sectors. It also invests in growth and value stocks of companies with diversified market capitalization and 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.
It’s one of the top ETFs that could benefit from China’s suspension of 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.
After all, without rare earths, the world can’t produce the millions of electric vehicles government leaders want on the roads. We can’t produce smart phones, computers, flat panel televisions, wind turbines, electric vehicle batteries, computer chips, defense equipment, semiconductors, digital cameras, or catalytic converters.
Sincerely,
Ian Cooper
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