Rare Earths Pure Play (I apologize)

[Heat.Beat]

Rare Earth ETF Pure Play



Sounds good, right? I know, there are a few out there, but maybe you don’t want to invest anymore in China than you have already by shopping at WalMart or Amazon.



So, how about Western Rare Earth ETF, or Non-Brics ETF? Do we stick to profitable companies only? Ok, wait - do we include those profitable companies whose profit is from commodity mining and are dabbling in or “pivoting” to rare earths? Ok, wait- I think there are already plenty of mining and materials funds that do that.



What I wish for but does not exist is the All-American Rare Earth and Critical Mineral Farm-to-Table ( oops, Mine-to-Magnet) Fund. To qualify, a company must be a): publicly traded, b): make no money, c): have no product marketable within the western hemisphere, d): have no logistics plan in place to to deliver hypothetical products to theorized supply chain partners and most critically, e): have a really great story in light of the above.



In keeping with ETF tradition of low management fees I humbly suggest using the time-tested (insider) Monkey Throwing Darts Model, or alternatively, the intrinsically scientific Zacks Motley Cramer Algore-ithm.



While awaiting these developments I’ll listen to the great folks here at REEx

 

[John]

Hi @Heat.Beat

Interesting you mention this! REEx have developed both a prototype ETF and a 'managed fund'. And we are in commercial discussions. Obviously the rankings (which are currently outdated, but about to be updated with a re-launch)...have a lot of data in the background. And we have much more data that we can apply to a 'managed fund'. Performance is streaks ahead of any other offerings in the market.

The current market offerings are terrible. Most of them have china companies. Which is just crazy. Given China are using rare earths as a weapon by lowering prices....which affects the profitability. Why have it in the ETF? And you are correct...there are alot of companies that look great in their presentations, but when you do the analysis (which we have)....just doesn't stack up. There are plenty I would short.

There is a lot more I would love to share, but hopefully we can soon.

If anyone out there is interested.

john@rareearthexchanges.com

 

[Rusted]

Good luck with that H.B. (which I'm guessing is the response you expected!). Let us know if you find one - but hurry up or the wild-west phase of r/e investment will have transitioned into something else. The most familiar R/E ETFs that come up (such as VanEck Rare Earth and Strategic Metals ETF (REMX) and the WisdomTree Strategic Metals and Rare Earths Miners UCITS ETF. ) tend to include stocks that you would want to exclude (that WisdomTree fund is 21.5% China, only 18.5% USA, and is nowhere near being purely rare earths). I am UK-based, and would be delighted to find a fund that exposed me to a good selection of non-China r/e stocks, and which didn't punish me with fund fees, and which week-to-week never dips below a 15% pa curve (which is very modest in a sector where r/e stocks are doubling/trebling per half-year). But in such a volatile sector, that requires a fund manager with very active trading skills, employing AI/algorithms, and probably talking in some techno language that only nerds can fathom. And I would still only invest a portion of my money while mostly dipping in and out of individual r/e stocks. And the whole r/e show hasn't been running long enough for any fund manager to boast a history. I am in my late-70s, so I'm not looking long-term - I want bankable quarterly gains please. I mostly use leveraged 1:5 spreadbet positions via IG.com/uk so am taking risk-upon-risk, chasing short-term momentum. The fund would go in my conventional stock-holdings portfolio which hopefully provides some slightly safer prospect.

 

[John]

This is all i can share.


This is obviously historical, to model performance. And the other ETFs only beat it in 2021-22 because they were loaded with Lithium stocks during that boom. But our future modelling shows massive long term growth for RE. Bascially every industry wants more and more.

And REEx has all the data on every RE company..along the entire supply chain.