China’s Rare Metals ETF Dips Despite YTD Growth in Assets and Participation

Highlights

• Quam CSI Rare Metals Theme ETF closed down 1.24% on March 27, 2025.
• 168 million shares outstanding.
• Fund focuses on strategic minerals crucial for:
  • Electric Vehicles (EVs)
  • Clean energy technology
  • Semiconductors
  • Defense systems
• Despite performance drawdown, the ETF shows renewed investor interest in critical resource sectors.

---

On March 27, 2025, the Quam CSI Rare Metals Theme ETF (561800) closed down 1.24%, with a daily turnover of 2.51 million yuan. Despite the drop, the fund has shown steady growth in scale and investor participation since the beginning of the year.

Key Fund Metrics

• Fund Name: Quam CSI Rare Metals Theme ETF
• Established: August 11, 2021
• Benchmark: CSI Rare Metals Theme Index
• Management Fee: 0.50% per annum
• Custody Fee: 0.10% per annum
• Fund Manager: Li Xiaohua
• Tenure Return: –43.46%

As of March 26, according to Yicai Global (opens in a new tab),  the fund had 168 million shares outstanding and a net asset value of 95.03 million yuan, marking a 5.99% increase in shares and 14.96% growth in assets under management (AUM) since the end of 2024. Liquidity remains moderate. Over the past 20 trading days, cumulative turnover reached 115 million yuan, averaging 5.74 million yuan/day. Year-to-date, the fund’s turnover across 55 trading days was 204 million yuan, or about 3.71 million yuan/day.

Heavyweight Holdings (Top Allocations):

• Salt Lake Co. (000792) – 9.53%
• Northern Rare Earth (600111) – 8.12%
• China Molybdenum (603993) – 7.11%
• Huayou Cobalt (603799) – 6.01%
• Ganfeng Lithium (002460) – 5.99%
• Tianqi Lithium (002466) – 5.17%
• China Mining Resources (002738) – 3.88%
• China Rare Earth (000831) – 3.13%
• Western Superconductor (688122) – 2.95%
• Xiamen Tungsten (600549) – 2.48%

Strategic Insight

This ETF is a barometer for China’s rare earth and critical mineral industry, with concentrated exposure to lithium, cobalt, niobium, tungsten, and rare earth producers—all crucial inputs for EVs, clean energy tech, semiconductors, and defense systems. Despite a substantial drawdown in fund performance since inception, the recent rise in AUM and participation suggests renewed investor interest in the strategic resource sector, potentially tied to Beijing’s industrial policy, green tech ambitions, and supply chain security measures.

The fund’s exposure to Northern Rare Earth and China Rare Earth also links it closely to China’s broader rare earth dominance, particularly as the country consolidates its grip on value-added processing and moves deeper into downstream manufacturing and export leverage. While short-term volatility remains, the ETF reflects long-term national trends—China’s commitment to critical minerals as a pillar of industrial and geopolitical strength.