Rare Earth ETF Rallying in May
May 13th at 2:49pm by Tom Lydon
An exchange traded fund that tracks rare earth metals and elements mining firms has been leading the market over the past week.
The Market Vectors Rare Earth/Strategic Metals ETF (NYSEArca: REMX) ended 3.4% higher Friday. The ETF has gained 10.1% over the past week, breaking above its short-term moving average.
Country allocations include Australia 19.6%, China 16.2%, U.S. 14.1%, Canada 10.2%, Japan 10.2%, Ireland 7.2%, South Africa 5.9%, France 5.5%, Chile 5.1%, Brazil 4.9% and Mexico 1.1%.
REMX’s top holdings include Iluka Resources 8.2%, Kenmare Resources 7.3%, Lynas Corp 6.9%, RTI International Metals 6.5% and Assore 5.9%.
Around 10.4% of REMX’s underlying holdings on a weighted basis have experienced insider buying within the past six months, according to Forbes.
Lynas Corp prices surged Thursday after the Malaysia’s election results favored the Australian miner, reports Simon Montlake for Forbes.
James Clapper, U.S. director of national intelligence, points out that China holds a monopoly over rare minerals. Rare earth prices spiked after China enacted a 40% export quota cut in July 2010 and peaked at record highs in mid-2011, LiveScience reports.
“As of December 2012, REE prices had receded, but still remained at least 80 percent, and as much as 600 percent … above pre-July 2010 levels,” Clapper said.
Market Vectors Rare Earth/Strategic Metals ETF
For more information on rare earth metals, visit our rare earth metals category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.