VanEck Rare Earth and Strategic Metals ETF

What does it do?

REMX is an ETF — a basket of stocks you can buy in one trade — that focuses on companies mining and processing rare earth metals and strategic minerals. Think of materials like neodymium, lithium, cobalt, and tungsten: the stuff inside your phone's speakers, electric car motors, and wind turbines. Instead of picking one mining company, REMX bundles around 20-25 of them together, including names like MP Materials in the US and Lynas Rare Earths in Australia. You get exposure to the whole rare earth industry in a single purchase.

How does it make money?

REMX itself does not mine anything — it makes money by charging investors a management fee of 0.50% per year on assets held in the fund, paid to VanEck. The fund's returns come from the performance of its underlying holdings, which are companies that earn revenue by extracting rare earth ores from the ground, refining them into usable materials, and selling those materials to manufacturers. For example, MP Materials sells processed rare earth concentrates to magnet makers, who then supply automakers like General Motors. When demand for EVs and defense equipment rises, these companies earn more, and REMX rises with them.

Why do investors care?

The core investment case is simple: the world needs more rare earths than it currently produces outside of China, and that gap has to be filled. Governments in the US, EU, and Australia are pouring billions into subsidies and contracts to build domestic rare earth supply chains, directly benefiting companies inside REMX. The growth story depends on EV adoption continuing to accelerate, defense spending staying elevated, and Western governments following through on reducing China dependency. If all three trends hold, demand for what these companies produce could surge over the next decade.