The Market Shares Rare Earth/Strategic Metal ETF has outperformed a basket of rare earth mining stock. However, the fund is more than a pure rare earth investment. Since trading started in late October 2010, the fund is up 31 per cent and is outperforming many of Van Eck’s other ETFs.
The demand for investment in rare earth elements is extremely high, and investors are looking for a way to enter the market without being solely dependent on mining company stocks. While a pure Rare Earth ETF is not yet available, there are options for investor looking to capitalize on the rare earth market.
The setting up of Exchange Traded Funds (ETFs) in the rare earths metals sector will ensure transparency and will go a long way in bringing in more investors, including institutional buyers.
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