Updated: 10/10/2025
They might not be household names, but rare earth elements are in just about everything you use—your phone, electric car, wind turbines, even MRI machines. Yet, here's the kicker: most of the world continues to rely on materials and magnets from China. Which is fine and dandy until China clamps down on those exports, sending shockwaves through the global markets.
That's why investors are eyeing rare earth ETFs—not just for portfolio diversification, but also as a strategic move to be a part of the rapidly growing and evolving rare earth supply chain.
Let's get to the point: Which REE ETFs actually provide a strong exposure to this niche that isn't reliant on China?
Let's dig in.
Table of Contents
What Are the Best Rare Earth ETFs to Invest in?
Rare Earth ETFs have become a popular buzzword for investors seeking to place their money on the entire supply value chain. As of today, we believe the current Rare Earth ETF options are just fine, not great.
FINRA/SEC Disclaimer: Past performance is not indicative of future results. Investing involves risk, including possible loss of principal. This communication is for informational purposes only and does not constitute an offer to sell or solicitation to buy any securities. Investors should consult their financial advisors before making investment decisions. REEx is purely an informational product at this stage.
1. VanEck Rare Earth/Strategic Metals ETF (REMX)
It stands out as a solid choice for most investors. With approximately $1.2 billion in assets under management, REMX provides comprehensive coverage of rare earth miners and producers across global markets. Its strategic mix of established mining companies and emerging technology providers makes it particularly appealing for investors wanting broad sector exposure.
2. Amplify Lithium & Battery Technology ETF (BATT)
This ETF appears to be a strong contender to REMX, which offers a more focused approach to battery-related rare earth metals. While not exclusively a rare earth fund, BATT provides excellent exposure to critical metals used in electric vehicle and renewable energy technologies.
3. U.S. & Allied Rare Earth Supply Chain ETF
The recently announced "U.S. & Allied Rare Earth Supply Chain ETF" by REEx is based on proprietary REEx algorithms and rules. Discussions with financial institutions have begun to bring this fund, with 0% Chinese exposure, to market. The past 5-year Performance of this ETF's selected holdings is outperforming other major markets. Exciting times! If you're interested in the REEx ETF, let us know on LinkedIn (opens in a new tab).
Deep Dive Into ETF Holdings & Sector Exposure
Most top rare earth ETFs concentrate holdings across multiple geographic regions, with significant exposure to Chinese (~30%) and North American mining companies. The VanEck Rare Earth/Strategic Metals ETF, for instance, includes prominent companies such as MP Materials, Lynas Rare Earths, and several Chinese rare-earth producers.
Key Performance Metrics
Investors should note that the current rare-earth ETFs exhibit higher volatility than traditional equity funds. The cyclical nature of commodity markets means these investments can experience more dramatic price fluctuations. This volatility presents both risks and opportunities for strategic investors willing to tolerate short-term market movements.
Geographic and Sector Breakdown
The advantage of an ETF is that it allows investors to easily capture the value of the broader global rare-earth supply chain. This includes miners, refiners, and technology companies developing advanced applications for rare earth metals across sectors such as electronics, renewable energy, and advanced manufacturing.
Risk Snapshot: Volatility and Market Dynamics
Rare earth investments come with inherent geopolitical and supply chain risks. China currently dominates global rare earth production, creating potential vulnerability to international trade tensions and strategic resource competitions.
Key Risk Factors
Technological disruptions, environmental regulations, and shifting global supply chains can significantly impact rare earth metal valuations. Investors should view these ETFs as strategic, potentially satellite positions within a diversified investment portfolio.
Expert Insights and Market Outlook
Financial analysts remain optimistic about rare earth metals' long-term potential. Growing demands from electric vehicle manufacturers, renewable energy infrastructure, and advanced technology sectors suggest continued market expansion.
Forward-Looking Projections
Morningstar and Bloomberg analysts consistently highlight rare earth metals as critical components of future technological and energy transitions. Strategic investments in well-managed ETFs could provide exposure to these emerging market opportunities.
Practical Investment Guidance
Most major brokerages, such as Fidelity, Charles Schwab, and Vanguard, offer easy access to rare-earth ETFs. Investors should consider minimum investment requirements, typically ranging from $100-$500, depending on the platform.
Recommended platforms for purchasing rare earth ETFs include:
- Fidelity
- Charles Schwab
- Vanguard
- Robinhood
- TD Ameritrade
Investors are advised to conduct thorough personal research and, if desired, consult financial advisors before making investment decisions in this specialized sector.
FAQs
What are rare earth metals, and why are they important for investors?
Rare earths are a group of 17 chemically similar elements with critical uses in electronics, defense systems, green tech, and more. Their scarcity and geopolitical relevance make rare earth investments attractive for long-term growth and diversification.
Are rare-earth ETFs environmentally sustainable?
Some ETFs offer exposure to ESG-aligned companies—especially those focused on clean tech and advanced recycling—but mining operations themselves often come with environmental challenges. Review each ETF's ESG rating and holdings before investing.
Do rare-earth ETFs also include non-rare-earth metals?
Some do. ETFs labeled "strategic metals" or "critical minerals" may include non-rare earths like lithium, cobalt, and nickel. Read the fund's prospectus or holdings list to be sure.
Are there leveraged or inverse rare earth ETFs?
As of 2025, there are limited leveraged or inverse rare earth-specific ETFs. Most available funds are long-only and passively managed. Use with caution due to sector volatility.
