How to Invest in Rare Earths Mining Outside of China

Why It Matters

Provides investors a concentrated, China‑free exposure to rare‑earth supply chains, aligning with rising demand and geopolitical risk management.

Key Takeaways

• REXC is the only ETF solely focused on rare‑earth companies.
• Requires at least 50% of assets in rare‑earth miners, explorers, refiners.
• Explicitly excludes Chinese firms, targeting non‑China supply chain exposure.
• Allocates over 95% of portfolio to rare‑earth operations, far above peers.
• Offers downstream exposure, covering mining through separation and refining.

Summary

The video introduces Sprott’s newly launched Sprott Rare Earths Ex‑China ETF (ticker REXC), a fund that concentrates exclusively on companies involved in the rare‑earth ecosystem outside of China.

REXC follows Sprott’s “pure‑play” rule, requiring at least half of its assets to be invested in miners, explorers, developers, refiners or separation firms. The portfolio is about 95‑96% weighted to rare‑earth businesses, a stark contrast to other ETFs that typically hold only 6‑10% exposure.

The manager emphasizes two differentiators: the fund’s sole focus on rare‑earths and its explicit exclusion of Chinese producers. By building an index that screens out China‑based firms, the ETF aims to capture growth in emerging non‑China projects while sidestepping supply‑chain headwinds tied to Beijing.

For investors, REXC offers a high‑concentration, geopolitically insulated play on a critical material class used in clean‑energy and defense technologies. The fund’s structure could attract capital seeking both sector exposure and risk mitigation, though its narrow focus also amplifies company‑specific volatility.

Original Description

Today, the rare earth metals market sits at roughly $14 billion. It's on track to more than double by the mid 2030s. Sprott Asset Management Head of ETFs Steve Schoffstall discusses what rare earths elements are and why they're so important to today's economy.

In this episode of Metals in Motion, Thalia Hayden @etfguide chats with Steve Schoffstall, Managing Partner, Sprott Inc. and Head of ETFs at Sprott Asset Management about trends in rare earths metals markets, and how investors can take advantage of the trends.

#rareearthminerals #mining #etf

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Important Video Disclosures

An investor should consider the investment objectives, risks, charges, and expenses of each fund carefully before investing. To obtain a fund’s Prospectus, which contains this and other information, contact your financial professional, call 1.888.622.1813 or visit https://sprottetfs.com/. Read the Prospectus carefully before investing.

Exchange Traded Funds (ETFs) are considered to have continuous liquidity because they allow for an individual to trade throughout the day, which may indicate higher transaction costs and result in higher taxes when fund shares are held in a taxable account.

The funds are non-diversified and can invest a greater portion of assets in securities of individual issuers, particularly those in the natural resources and/or precious metals industry, which may experience greater price volatility. Relative to other sectors, natural resources and precious metals investments have higher headline risk and are more sensitive to changes in economic data, political or regulatory events, and underlying commodity price fluctuations. Risks related to extraction, storage and liquidity should also be considered.

Shares are not individually redeemable. Investors buy and sell shares of the funds on a secondary market. Only market makers or “authorized participants” may trade directly with the fund, typically in blocks of 10,000 shares.

Sprott Asset Management USA, Inc. is the Investment Adviser to the Sprott ETFs. ALPS Distributors, Inc. is the Distributor for the Sprott ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc.

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