Rare-earth funds provide an alternative for investors who prefer not to choose specific stocks.
The VanEck Vectors Rare Earth/Strategic Metals Exchange Traded Fund is the most widely available and recognized of these instruments (REMX).
This ETF is not focused solely on rare earths, as it also invests in titanium, molybdenum, cobalt, and lithium stocks, but it does provide investors with access to rare-earths companies like Lynas and China Northern Rare Earth Group. The fund’s value as of early June 2021 has increased by almost 125% during the preceding 12 months.
The Dolefin Rare Earth Elements Fund specifically invests in the common stock of REEs companies. However, this fund is not a pure play either, as platinum group metals companies are among its largest holdings alongside rare-earth miners.