Rare Earth ETF (REMX) Hits New 52-Week High
For investors seeking momentum, VanEck Rare Earth/Strategic Metals REMX is probably on the radar. The fund just hit a 52-week high and has soared 136% from its 52-week low of $32.36 per share.
Are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
REMX in Focus
The underlying MVIS Global Rare Earth/Strategic Metals Index tracks the overall performance of companies involved in producing, refining, and recycling of rare earth and strategic metals and minerals. REMX charges 58 bps in annual fees (see: all the Materials ETFs here).
Why the Move?
Last week, Beijing imposed new export restrictions, requiring foreign companies to obtain a Chinese government license to ship products containing more than 0.1% rare earth content.To obtain the license, foreign companies must disclose the intended use of the products. Most of these restrictions will be in effect from Dec. 1 (quoted on Aljazeera). The move, which triggered a new wave of U.S.-China trade tensions, boosted the REMX ETF.
More Gains Ahead?
REMX might remain strong, given its positive weighted alpha of 106.21 (per barchart.com).
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VanEck Rare Earth/Strategic Me (REMX): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
