VanEck Rare Earth/Strat Mtls ETF's Average People Pillar and Process Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy’s management team earns an Average People Pillar rating. The strategy merits an Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Albemarle

MP Materials

Altus Midstream

Tronox

Lithium Americas

Sigma Lithium Corp

Era Group

Lithium Americas (Argentina) Corp

PennyMac Mortgage Investment

Piedmont Lithium

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. VanEck Rare Earth/Strat Mtls ETF earns an Average Process Pillar rating. The most important driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 83% also contributes to the process. Lastly, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.6 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Global Rare Earth/Strategic Metals Index.  The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The index includes companies primarily engaged in a variety of activities that are related to the producing, and refining and recycling of rare earth and strategic metals and minerals. It is non-diversified. 

 The portfolio has allocations in its top two sectors, basic materials and technology, that are similar to the category. The sectors with low exposure compared to category peers are utilities and financial services; however, the allocations are similar to the category. The portfolio is composed of 32 holdings and is relatively concentrated. Specifically, 64.9% of the strategy's assets are housed within the top 10 holdings, as opposed to the category’s 36.3% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 41% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

VanEck’s equity team is good but unexceptional, earning the strategy an Average People Pillar rating. The fund takes a solo manager approach, with Peter Liao as the only listed manager at the helm, who brings 18 years of portfolio management experience to the table. They manage over 25 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate. With only one manager listed on the strategy, the passive strategy is vulnerable to key-person risk. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

VanEck’s ownership structure and specialization make it unique among industry peers. The firm’s founding family and namesake still have control, and its product lineup still reflects its legacy as a specialist in niche market segments. VanEck earns an Average Parent Pillar rating. 

Founded by John van Eck in 1955, the firm staked its claim in the industry by capitalizing on burgeoning markets. Starting with the opening of Western Europe to U.S.-based investors in the wake of the Marshall Plan, VanEck’s largest and most successful products provide exposure to areas of the market that are off the beaten path, such as hard assets, emerging-markets debt, and below-investment-grade-rated corporate debt.

Through its history, VanEck has taken an opportunistic approach to product development. For instance, since 2018, VanEck has launched strategies that provide exposures ranging from international REITs to companies involved in video game development. Regardless of where their reach takes them, however, VanEck builds a case that the strategy will be relevant over the long term and that its risks must be easy to understand. However, not all its products catch on, and the firm has shuttered several offerings in the last decade. 

VanEck remains a privately held firm, wholly owned by CEO Jan van Eck and his family. Although this enables the firm to focus on the long term and the firm offers some employees participation in profits, the firm hasn’t used equity as a recruiting and retention tool and introduces some key-person risk in the executive suite.

Parent

VanEck Rare Earth/Strategic Metals ETF

REMX tracks an index of global companies that mine, refine, or recycle rare earth and strategic metals.

VanEck Rare Earth/Strategic Metals ETF offers diversification in rare earth, lithium, and other strategic metals companies. The ETF has seen poor returns in the past few years, but there is potential for a rebound in lithium and rare earth prices. China's improving economy and growing demand for strategic metals could drive the rebound of the ETF.

REMX: This Rare Earth And Metals ETF Appears Poised For A Breakout

VanEck Rare Earth/Strategic Metals ETF has been in a bearish trend, with a 38.7% decline since July 2023. The REMX ETF is primarily weighted towards lithium, not rare earth metals, making it more of a lithium ETF. The decline in lithium prices could present a compelling opportunity for REMX at below $55 per share.

An Update On REMX: Really A Lithium ETF

Optica Rare Earth & Critical Materials ETF

China is the world's biggest producer and exporter of rare earth elements by a large margin, but it's grasp on the market is slipping, providing opportunities for investors looking to capitalize on the growth in demand for these “supercritical materials.”

China's grip on rare earth elements is slipping. Investors should take note.

ALPS Clean Energy ETF

Amplify Lithium & Battery Technology ETF

SPDR S&P Kensho Clean Power ETF

Global X CleanTech ETF

Proshares S&P Kensho Cleantech ETF

Global X Funds-Global X Disruptive Materials Etf

Fidelity Clean Energy ETF

VanEck Green Metals ETF

Defiance Next Gen H2 ETF

Direxion Hydrogen ETF

Global X Hydrogen ETF

iShares Global Clean Energy ETF

Global X Lithium & Battery Tech ETF

Invesco Global Clean Energy Portfolio

First Trust NASDAQ Clean Edge Green Energy Index Fund

Global X Solar ETF

Global X Renewable Energy Producers ETF

Trueshares Eagle Global Renewable Energy Income ETF

VanEck Low Carbon Energy ETF

Invesco Solar ETF

Volcon

WisdomTree Battery Value Chain and Innovation Fund

Global X Wind Energy ETF

Invesco MSCI Sustainable Future ETF

Investors who piled into clean energy themes the last few years are experiencing some performance pain this year, as we appear to be experiencing a detour on the road to the clean energy transition. Related themes have been hard hit this year due to a confluence of events.

A Detour on the Road to the Clean Energy Transition

China's recent export ban on rare earth technologies may have significant consequences for rare earth producers. However, the VanEck Rare Earth/Strategic Metals ETF may not be the best option for investors seeking rare earth exposure, as it is heavily concentrated in lithium miners and developers. Individual stocks like Lynas Rare Earths and MP Materials may be better alternatives for investors interested in the rare earths theme.

REMX: Too Much Lithium In The Mix

VanEck Vectors Africa Index ETF

VanEck Vectors Biotech ETF

VanEck Vectors Gaming ETF

VanEck Vectors Brazil Small-Cap ETF

VanEck Vectors Social Sentiment ETF

Vaneck Cmci Commodity Strategy Etf

VanEck Vectors ChinaAMC SME-ChiNext ETF

VanEck Vectors Oil Refiners ETF

VanEck Vectors Digital Transformation ETF

Vaneck Digital India ETF

VanEck Vectors Egypt Index ETF

VanEck Video Gaming and eSports ETF

VanEck Vectors Environmental Services ETF 

VanEck Vectors Gold Miners ETF

VanEck Junior Gold Miners ETF

VanEck Vectors Natural Resource ETF

VanEck Robotics ETF

VanEck Vectors Indonesia Index ETF

VanEck Vectors Israel ETF

VanEck Morningstar Wide Moat ETF

VanEck Vectors Agribusiness ETF

Vaneck Morningstar ESG Moat ETF

VanEck Morningstar Global Wide Moat ETF

VanEck Vectors Morningstar International Moat ETF

VanEck Vectors Uranium+Nuclear Energy ETF

VanEck Vectors Oil Services ETF

VanEck Commodity Strategy ETF

Vaneck Green Infrastructure ETF

VanEck Vectors Russia ETF

VanEck Vectors Russia Small-Cap ETF

VanEck Vectors Retail ETF

VanEck Vectors Steel ETF

VanEck Vectors Semiconductor ETF

Vaneck Morningstar SMID Moat ETF

VanEck Vectors Vietnam ETF

VanEck Future of Food ETF

NEW YORK--(BUSINESS WIRE)--VanEck announced today the 2023 annual distributions per share for its VanEck® equity exchange-traded funds.

VanEck Announces Year-End Distributions for VanEck Equity ETFs

First Trust NASDAQ Global Auto Index Fund

Global X Autonomous & Electric Vehicles ETF

Defiance Pure Electric Vehicle ETF

SPDR S&P Kensho Smart Mobility ETF

KraneShares Electric Vehicles & Future Mobility Index ETF

In my new role as head of thematic strategy at VettaFi, I aim to bring you a weekly disruptive tech theme to consider.

Disruptive Tech Theme of the Week: Electric Vehicles

China's economy is in severe trouble, impacting the bull case for rare earth metals and funds related to that theme. The VanEck Rare Earth/Strategic Metals ETF provides exposure to companies in the rare earth and strategic metals industry. Geopolitical risks, particularly China's dominance in the market, pose challenges for investing in rare earth and strategic metals.

REMX: A Good Theme But China Remains The Question

ARK Fintech Innovation ETF

ARK Innovation ETF

ARK Web x.0 ETF

SPDR Bloomberg 1-3 Month T-Bill ETF

Vanguard Total Bond Market ETF

iShares MSCI Chile ETF

Quadratic Interest Rate Volatility and Inflation ETF

Madison Aggregate Bond ETF

Invesco QQQ

AXS Real Estate Income ETF

SPDR S&P 500 ETF Trust

United States Natural Gas Fund LP

WisdomTree Bloomberg Floating Rate Treasury Fund

Invesco DB US Dollar Index Bullish Fund

Hi! In this week's ETF Wrap, you'll see the spot in markets investors liked in August as ETF flows trended below the historical average in a down month for stocks.

ETF flows ‘swoon' in August as this area of bonds dominate

VanEck Energy Income ETF

VanEck Merk Gold Trust

VanEck Inflation Allocation ETF

The rationale for investing in natural resource equities and commodities has stayed consistent: to enhance portfolio diversification, access global growth and hedge against inflation. The sharp economic recovery from the depths of the pandemic coupled with continually evolving expectations in terms of future impact have recast the spotlight on natural resources and commodities.

Natural Resources and Commodities: Invest Resourcefully

China has restricted exports of germanium and gallium, citing national security reasons. These metals are crucial for high-tech applications, including semiconductors, and China produces a significant portion of the world's supply. The restrictions could impact the global semiconductor industry, with seven of the top ten companies based in the U.S. The move could also signal China's intention to limit the flow of critical metals to the U.S. and its allies.

REMX Could Soar As China Limits Critical Commodities

Energy Fuels

Global X Copper Miners ETF

iShares MSCI Global Metals & Mining Producers ETF

Escalating geopolitical tension puts commodities in the spotlight

Huge Gains Are Coming (Not AI)

Global X Artificial Intelligence & Technology ETF

IMGP Berkshire Dividend Growth ETF

ProShares Bitcoin Strategy ETF

Amplify Transformational Data Sharing ETF

Global X Robotics & Artificial Intelligence ETF

Vanguard Extended Duration Treasury ETF

iShares MSCI Emerging Markets ex China ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

Invesco WilderHill Clean Energy ETF

iShares 10-20 Year Treasury Bond ETF

Simplify Short Term Treasury Futures Strategy ETF

PIMCO 25+ Year Zero Coupon US Treasury Index ETF

Hello! This is markets reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, I spoke with CFRA's Aniket Ullal, head of ETF data and analytics, about thematic ETF ideas and investment categories for the second half of 2023.

Here are ETF themes and categories investors may want to consider in the second half of 2023

The alternative energy revolution is driving demand for rare earth elements used in technologies like electric vehicles, wind turbines, and solar panels. The global market for rare earth metals is projected to grow at a compound annual growth rate of at least 7% over the next eight years. The VanEck Vectors Rare Earth/Strategic Metals ETF offers exposure to companies involved in producing, refining, and recycling rare earth and strategic metals.

REMX: Rare Earth Metals Boom Rolls On

Global X Cybersecurity ETF

Invesco China Technology ETF

IQ CBRE Real Assets ETF

iShares 0-3 Month Treasury Bond ETF

Amplify Junior Silver Miners ETF

Aberdeen Standard Physical Silver Shares ETF

iShares Silver Trust

iShares TIPS Bond ETF

Global X Uranium ETF

Sprott Uranium Miners ETF

BondBloxx Bloomberg One Year Target Duration US Treasury ETF

Hello! This is markets reporter Isabel Wang bringing you this week's ETF Wrap. In this week's edition, we take a look at inflation-protected bond ETFs.

This once popular ETF used to hedge against inflation is now out of favor. What investors are doing now.

REMX is an excellent vehicle for investors wishing to add rare earth exposure to their portfolio. The ETF maintains its focus on companies operating higher up the supply chain.

REMX: A Good ETF But A Difficult Market Environment

Given the new-era transition to clean-green energy, EVs, and battery backup, an investment in rare earth and strategic metals appears to be a no-brainer. However, the VanEck Rare/Strategic Metals ETF is highly exposed to China - and that could turn out to be a big problem for investors.

REMX: Downgrading Strategic Rare Earth Metals ETF On China Risks

Roundhill Meme ETF

Proshares Online Retail ETF

Valkyrie Bitcoin Miners ETF

Easing inflation, hopes of the Fed's slower rate hike path and a reopening in China bolstered the risk appetite of investors.

5 Sector ETFs That Beat the Market in January

Invesco DB Base Metals Fund

SPDR S&P Metals & Mining ETF

Here are some of the largest exchange-traded funds focused on the metals industry.

Investing in Metals ETFs

Vaneck Digital Asset Mining ETF

NEW YORK--( BUSINESS WIRE )--VanEck announced today the following 2022 annual distributions per share for its VanEck® equity exchange-traded funds.

VanEck Announces Yearend Distributions for VanEck Equity ETFs

VanEck ETF may be boosted by demand for metals used in EV batteries.

REMX: The Only Route for Rare Earth Investing

VanEck Rare Earth/Strategic Metals ETF (REMX) tracks global rare earth mining and recycling companies. REMX casts a wide global net with holdings in both emerging and developed markets across five continents.

REMX: Looking For Lanthanum In The Rough

Rare earth metals have had quite a run. Reasons to be bullish? Bullish reason one: Demand will continue to rise.

3 Reasons To Consider REMX And Another Reason To Proceed With Caution After Recent Correction

REMX invests in rare earth and strategic metals producers, which may become the most important sources of energy and economy in the future. During the past 12 months, REMX's investments in Australian, Canadian and French miners delivered positive price growth, while investments in Chinese, American, and Dutch companies generated negative price growth.

REMX: Cautiously Bullish On This Global Rare Earth/Strategic Metals ETF

Whether it's everyday consumer electronics, military gear, or renewable energy products, rare earth metals are increasingly essential to an array of industries.

Essential Elements Offer Exciting Investment Opportunity

News for VanEck Rare Earth/Strategic Metals ETF ETF (REMX)