It's not hard to see why investing in rare metals is a long-term investment theme. The rare metals are 17 metallic elements with unusual magnetic, physical, and functional properties that make them very important in modern technology, including:
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Defense and national security
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Artificial intelligence, semiconductors, and data centers
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Electricity and clean energy
Rare matter is often placed as one of scarcity, but it is not. Many countries have large deposits of rare earths, including the United States, Australia, Canada, Brazil, and India.
China's dominance in the exotic world comes from decades of developing its central processing industry, rather than simply controlling the largest deposits. Since the 1980s, China has invested heavily in refining, separation technology, chemical engineering power, and magnetics production—areas that other countries avoided due to cost, environmental complexity, and long development times.
The rare earth's refining is chemically powerful and produces radioactive products, and China's willingness to support the industry and manage its environmental burdens allowed it to grow rapidly while competitors lagged behind. This is where the investment opportunities are today.
Why Rare Earth Refining is a Real Investment Opportunity
A bottle in a rare world is in the process of refining. This was a choice made by China (to invest in refining) and many other countries, including the United States, chose not to invest in refining.
The Trump administration is accelerating rare domestic developments through targeted industrial policy, including federal funding, strategic partnerships, and eased permits for key mineral projects. Rather than sweeping deregulation, the focus is on removing specific barriers that have historically made US refining uneconomic—such as long environmental review times and limited federal support for centralized processing.
These policy changes are designed to help companies begin refining rare earths within the United States for the first time in decades. As a result, several US companies are now receiving federal support to build refining, separation, and magnetic production capacity—marking the first major restructuring of the domestic rare earth supply chain in more than 30 years.
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MP Materials NYSE: MP: The Pentagon became the company's largest shareholder after buying $400 million in preferred stock in July 2025. The investment supports the company's expansion into rare earth exploration and the construction of a second magnet manufacturing plant.
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USA Rare Earth NASDAQ: USAR: The Trump administration announced a partnership in early 2026 that gives the company access to $1.6 billion in funding. The deal also issued 16.1 million shares to the Department of Defense, which could increase the government's stake to between 12% and 25%, depending on the exercise of the warrants.
This is where some investors may believe this opportunity is too risky. After all, there are no guarantees in this industry, and real profits may be years away. However, for patient investors with a long-term view, that's a valid argument for investing in an exchange-traded fund (ETF) that covers a number of sector holdings. This provides exposure to the entire supply chain without over-reliance on one or two companies.
REMX: A Diversified Rare-Earth Investment ETF
VanEck Rare Earth and Strategic Metals ETF today
VanEck Rare Earth and Strategic Metals ETF
As of 07/10/2026 04:10 PM Eastern
- 52 week interval
- $46.30
▼
$111.55
- Dividend Yield
- 1.63%
- Assets Under Administration
- $2.40 billion
VanEck Rare Earth and Strategic Metals ETF share price NYSEARCA: REMX tracks an index of global companies that mine, refine, or recycle rare earth metals and techniques.
The fund is an ideal choice for investors looking for a direct proxy of the current export control background,
REMX is a weighted average market cap of 38 stocks. Albemarle NYSE: ALB it has the largest weight in the fund at about 7.2%. The fund has $2.4 billion in assets under management (AUM) with an overall expense ratio of 0.58%.
REMX is up more than 91% in the last 12 months. But the sharp sell-off that began in May has pushed the stock price into a 52-week range, potentially creating a strong entry point for investors.
EART ETF Targets Companies Powering Future Technologies
Global X Rare Earth & Critical Materials ETF Today
Global X Rare Earth & Critical Materials ETF
As of 07/10/2026 03:47 PM Eastern
- 52 week interval
- $17.42
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$36.92
- Dividend Yield
- 0.66%
- Assets Under Administration
- $39.03 million
Global X Rare Earth & Critical Materials ETF NASDAQ: WORLD it's a game that's very focused on the rare theme.
The fund targets companies that produce rare earths and other raw materials or composites that are important for expanding the development of key technologies such as electric vehicles (EVs), energy storage, robotics, and radar systems.
The fund has more than 50 stocks that are measured according to their Free Float Market Capitalization. The fund currently has approximately $40 million in AUM with a net expense ratio of 0.59%.
EART is up more than 60% in the last 12 months. Like REMX, the fund has been in a negative position since mid-May, giving investors a similar opportunity to plan.
The SETM ETF Provides Exposure to Diversified Assets
Sprott Critical Materials ETF today
Sprott Critical Materials ETF
As of 07/10/2026 04:00 PM Eastern
- 52 week interval
- $18.21
▼
$40.55
- Assets Under Administration
- $563.27 million
In contrast to EART, which takes a narrower focus on the rare earth sector, the Sprott Critical Materials ETF NASDAQ: SETM it takes a broad view and includes focusing on a few key metals that are important to the modern industrial economy.
For example, in percentage terms, uranium companies have the most exposure to the fund.
Focusing on a wide range of instruments, the fund at any time between 125 and 170 holdings, which provides significant diversification. The fund has close to $560 million in AUM and a net expense ratio of 0.65%.
SETM is up 74% in the last 12 months. But like the broader sector, the fund has fallen more than 14% in the past three months.
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