China, which controls 90% or more of the global rare earths market, is mulling new taxes and restrictions on the production of those metals in an effort to curb pollution. Those restrictions could boost rare earths prices and REMX in the second half of this year.
REMX tracks miners, refiners, recyclers and producers of rare earth/strategic metals. Chinese companies make up 19.3% of the ETF’s overall portfolio, along with the U.S. 18.5%, Australia 13.5%, Japan 8.5% and Canada 8.6%.
Market Vectors Rare Earth/Strategic Metals ETF
ETF Trends editorial team contributed to this post.