REMX ETF Review: Is Rare Earth Metals ETF Worth Buying?

VanEck Rare Earth/Strategic Metals ETF provides exposure to the critical minerals that China dominates and the West desperately needs — rare earths, lithium, cobalt, and other strategic metals essential for defense, semiconductors, and clean energy technology.

Last updated: 2026-02-02 · Data: Yahoo Finance, fund prospectuses, SEC filings

What Is REMX?

REMX tracks the MVIS Global Rare Earth/Strategic Metals Index, giving investors exposure to companies that produce, refine, and recycle rare earth and strategic metals essential for modern technology. Managed by VanEck since 2010, this ETF captures the full value chain from mining operations to processing facilities across global markets.

The fund carries a 0.58% expense ratio, manages $1.63 billion in assets, and offers a 1.76% dividend yield.

Current Snapshot

Why It Matters for Real Asset Investors

REMX sits at the intersection of three Energy Macro pillars: supply chain resilience, technological transition, and geopolitical risk. These metals aren't optional — they're mandatory inputs for everything from wind turbines to electric vehicles to defense systems. When China controls 80% of rare earth processing and the West scrambles to build alternative supply chains, owning the picks and shovels becomes strategic.

This ETF shines during periods of supply disruption, technological acceleration, or geopolitical tension. It struggled in 2022-2023 as recession fears hit industrial demand, but the underlying thesis strengthens as governments prioritize supply chain security over cost efficiency.

The rare earth story isn't just about scarcity — it's about concentration risk. Beijing's willingness to weaponize critical materials transforms these obscure elements into geopolitical assets. REMX provides exposure to both the incumbents who control today's supply and the challengers building tomorrow's alternatives.

Top Holdings

Albemarle (ALB) - 8.2%: The world's largest lithium producer, riding the battery boom despite recent price volatility. Their global operations provide geographic diversification.

China Northern Rare Earth - 7.7%: Beijing-backed rare earth giant with dominant market position. Currency and regulatory exposure require careful monitoring.

Lynas Rare Earths (LYC) - 6.2%: Australia's strategic alternative to Chinese supply, processing in Malaysia with Pentagon backing for permanent magnet materials.

MP Materials (MP) - 5.8%: California's Mountain Pass mine, the only large-scale rare earth operation in America. Building downstream processing to reduce China dependence.

Pilbara Minerals (PLS) - 5.8%: Australian lithium miner benefiting from EV battery demand and supply chain reshoring efforts.

Sociedad Química y Minera (SQM) - 5.7%: Chilean lithium producer with massive Atacama Desert operations and strong cash generation.

How It Fits the Portfolio

REMX functions as a supply chain insurance policy with upside exposure to technological disruption. Position sizing should reflect its volatility — these metals swing hard on sentiment, inventory cycles, and geopolitical headlines. A 2-5% allocation provides meaningful exposure without overwhelming portfolio risk.

The ETF pairs naturally with infrastructure plays (renewable energy needs these metals) and complements broader commodity exposure. It's less correlated with oil and gas, making it useful for diversifying within real assets. Watch for entry points during broad market selloffs when industrial fears override strategic fundamentals.

Regime Signals

REMX outperforms during supply shocks, geopolitical tensions, and early-cycle industrial recovery. Dollar weakness helps since many holdings report in foreign currencies. The ETF struggles when recession fears hit industrial demand or when China floods markets to maintain market share.

Key inflection points include U.S.-China trade relations, Pentagon rare earth initiatives, and major automaker EV commitments. Rising real rates hurt these capital-intensive operations, while infrastructure spending programs provide fundamental tailwinds.

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Frequently Asked Questions

What are rare earth metals and why do they matter?

Rare earth elements are 17 metallic elements critical for modern technology — permanent magnets in wind turbines and EV motors, phosphors in displays, catalysts in refining, and components in defense systems. China controls approximately 60-70% of rare earth mining and 85-90% of processing. This supply concentration creates geopolitical risk that governments worldwide are scrambling to address through supply chain diversification, which benefits REMX holdings.

What is the expense ratio of REMX?

REMX charges a 0.54% expense ratio for exposure to roughly 20 companies involved in rare earth and strategic metals production. Holdings span Australia (Lynas Rare Earths), China (multiple processors), Brazil (CBMM), and other jurisdictions. The fee is competitive given the highly specialized nature of the rare earth mining sector and the due diligence required to construct the index.

What are the top holdings in REMX?

REMX's largest holdings typically include Lynas Rare Earths (the largest non-Chinese rare earth producer), Pilbara Minerals (lithium), Zhejiang Huayou Cobalt, and various Chinese rare earth companies. The fund provides the broadest available ETF exposure to strategic metals beyond the more common copper and lithium, capturing niche materials that are essential for defense and technology supply chains.

What are the risks of investing in REMX?

REMX carries significant geopolitical risk — Chinese export restrictions or processing bans can dramatically impact the entire rare earth market. The sector is small and illiquid, leading to high volatility. Many companies are early-stage or have limited track records. Rare earth prices can be manipulated by dominant producers, and substitution risk exists as technology evolves. REMX is a high-conviction thematic play that should be sized conservatively.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, VanEck filings