Are these EFTs any good?!

[Dustin]

Looking to get thoughts from the community. Are these EFTs worth investing in?

• VanEck Rare Earth/Strategic Metals ETF (REMX)
• Global X Lithium & Battery Tech ETF (LIT)
• Amplify Lithium & Battery Technology ETF (BATT)
• KraneShares Electric Vehicles & Future Mobility ETF (KARS)

The concept of an EFT is great because it diversifies the investment across multiple channels/companies, but... is it too good to be true? Especially with the ones I've linked to above?

 

[BayouFun]

Looking to get thoughts from the community. Are these EFTs worth investing in?

• VanEck Rare Earth/Strategic Metals ETF (REMX)
• Global X Lithium & Battery Tech ETF (LIT)
• Amplify Lithium & Battery Technology ETF (BATT)
• KraneShares Electric Vehicles & Future Mobility ETF (KARS)

The concept of an EFT is great because it diversifies the investment across multiple channels/companies, but... is it too good to be true? Especially with the ones I've linked to above?

Looking to get thoughts from the community. Are these EFTs worth investing in?

• VanEck Rare Earth/Strategic Metals ETF (REMX)
• Global X Lithium & Battery Tech ETF (LIT)
• Amplify Lithium & Battery Technology ETF (BATT)
• KraneShares Electric Vehicles & Future Mobility ETF (KARS)

The concept of an EFT is great because it diversifies the investment across multiple channels/companies, but... is it too good to be true? Especially with the ones I've linked to above?

 

[Fundamental]

Many will still remember the Gold ETF's and futures scam, where at one stage there was 3x more paper Gold than Physical! While the idea is sound to begin with as it is a way to spread risk without a lot of effort, there is a huge risk if the Fund does not cover its book with actual physicals. As with Bitcoins, everything is rosy while prices are going up. But eventually the S will hit the F when it is discovered that there are no or insufficient Physical assets to support the initial capital investment. That said I think VanEck are a useful tool.

 

[John]

Out of interest @Fundamental how do you use it as a tool? Do you track the individual companies included within the ETF? The weightings etc?

The ones I have seen tend to have a decent exposure/weighting to China Northern Rare Earth....and i don't think that has helped their performance...

 

[Fundamental]

Very true John, Also the fact that it included exposure to other CM's muddied the water. It was however a good general indication of 'Sentiment' across this sector without constantly having to update every individual participant. Individual performance is subject to singular events, whereas an Aggregate tends to reflect Global trend.