Opinions Stockchase Insights
VanEck Vectors Rare Earth/Strategic Metals ETFREMXDON'T BUYJun 11, 2025
Stockchase InsightsUnknown
$39.98
Stock price when the opinion was issued
$88.59
As of Jun 05, 2026. Market Open.
E.T.F.'s
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COMMENT
Rare earths.
Seeing conversations between China and the West about the supply of rare earths in everything from EVs/solar panels/batteries to military purposes. Becomes a critical asset. Rare earths are actually very common. But in processing them, there's a substantial environmental cost with lots of hazardous by-products. So far, China has taken on that task globally.
Now NA and SA are going to have to start refining these metals in order to have some sort of sovereignty over those types of resources. They're important from both an economic and a military standpoint.
This ETF has both US and international names. An alternative that's closer to home is XBM.
E.T.F.'s
COMMENT
REMX has a 5-year annualized return of +3.59%. But its three-year is -23.57%. This shows the high volatility of the sector. The sector largely trades on sentiment towards EVs, electronics and China. Fees are 0.58%. Its weak performance has largely stemmed from its high exposure to China, when there was an 'avoid China' mentality in the market, and of course the country did experience an economic slowdown. It still has 31% exposure to China. A shift in sentiment would help here, but that is hard to time, of course. We might prefer a more-generalized metals ETF such as PICK (5-year +12.85%). It would not have the same upside in a rare earth rally, but doesn't have the same degree of performance pain, either.
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