REMX Rare Earth Strategic Metals ETF – Exchange Traded Fund Starts Trading On Nyse

by Olivier on October 28, 2010

Rare Earth Elements are now officially going mainstream and Rare Earth Stealth Bull Market times without anybody taking notice are over. Van Eck launched their new Market Vector’s Rare Earth / Strategic Metals ETF today. This is certainly an exciting trading vehicle that is now available as momentum traders have started actively trading REE stocks. When new ETFs are launched, it is often a good idea not to blindly jump on the bandwagon as it takes time for companies to create ETFs reflecting new trends. Today’s trading saw broad selling across the Rare Earth sector. This goes to show the timing of an ETF launch is extremely tough as it is comparable to a ‘sell the news’ situation.

So far, it looks like Rare Earth Element Stocks are here to stay. What makes the new REMX – Rare Earth ETF attractive is the fact is is well diversified. As you might have noticed, the name of the ETF includes ‘Strategic Metals’. I’ve written about ‘Strategic Metals’ in the past. I named them ‘Exotic Metals’ at the time which best reflects the notion most of them are completely unknown to the general public. The same somehow applies to Lithium although awareness for Lithium has drastically increased.

Fund Description:

What are Rare Earth/Strategic Metals? How are they used?

Rare earth/strategic metals are industrial metals that are typically mined as by-products in operations focused on precious metals and base metals. Compared to base metals, they have more specialized uses and are often more difficult to extract. Currently, approximately 49 elements in the periodic table are considered rare earth/strategic metals. They include such elements as cerium, manganese, titanium and tungsten. Strategic metals are used in a variety of technologies including jet engines, hybrid cars, steel alloys, wind turbines, flat screen televisions and cellular phones. Rare earth metals, a subset of strategic metals, are a collection of 17 chemical elements that are essential in many of today’s most advanced technologies, with particular applications in electronics.

The Rare Earth/Strategic Metals ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Rare Earth/Strategic Metals Index.

Fund Holdings:

Iluka Resources Ltd
Lynas Corp Ltd
Titanium Metals Corp – TIE (NYSE)
Thompson Creek Metals Co Inc – TC (NYSE)
Molycorp Inc – MCP (NYSE)
RTI International Metals Inc – RTI (NYSE)
OSAKA Titanium Technologies Co
China Rare Earth Holdings Ltd
Neo Material Technologies Inc – NEM.TO
China Molybdenum Co Ltd
Cia Minera Autlan SAB de CV
Toho Titanium Co Ltd
Hunan Non-Ferrous Metals – H
Kenmare Resources PLC
Rare Element Resources Ltd – RES.V (TSX) / REE (AMEX)
Avalon Rare Metals Inc – AVL.TO (TSX)
Ferbasa-Ferro Ligas da Bahia
General Moly Inc – GMO (AMEX)
International Ferro Metals Ltd
Quest Rare Minerals Ltd – QRM.V (TSX)
5N Plus Inc – VNP.TO
Galaxy Resources Ltd
Daiichi Kigenso Kagaku-Kogyo

Commodity ETFs worth checking:

Related Charts:

Our life is frittered away by detail… Simplify, simplify. – Henry David Thoreau

My public list with all my charts can be viewed here:

Buenas noches!

{ 1 trackback }

Comments on this entry are closed.

Previous post:

Next post: