VanEck Rare Earth and Strategic Metals

ETF description

This ETF focuses on investing in companies involved in the production and distribution of rare earth elements, which are essential materials used in various high‑tech products, including smartphones, electric vehicles, and renewable energy technologies. Rare earth elements are crucial for modern technology, making them increasingly important as the world shifts towards more advanced and sustainable solutions.

By investing in this ETF, individuals can gain exposure to a range of companies that extract and process these materials, as well as those that utilize them in their manufacturing processes. This approach allows investors to tap into a niche market that may benefit from growing demand in sectors like electronics, clean energy, and automotive.

Issuer details

VanEck is a globally recognized asset management firm, managing over $85 billion in assets as of June 2024. VanEck offers a wide range of investment products covering various market segments. Founded in 1955 by John C. van Eck, the firm has a strong expertise in commodities and emerging markets. VanEck is also committed to investor education and transparency. Notable ETFs include the VanEck Gold Miners ETF (GDX), the VanEck Semiconductor ETF (SMH), and the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL), reflecting VanEck’s dedication to offering diverse and cutting‑edge investment solutions.

Index details

The MVIS Global Rare Earth/Strategic Metals Index tracks the performance of the global rare earth and Strategic metals segment. The Index includes companies with at least 50% (25% for current components) of their revenues from rare earth / strategic metals or with mining projects that have the potential to generate at least 50% of their revenues from rare earth / strategic metals when developed.