VanEck Rare Earth/Strategic Metals ETF Hits New Yearly High

The VanEck Rare Earth/Strategic Metals ETF hit a new high for the year in 2021 as investors seek diversification and an influx of money into ETFs. The VanEck Rare Earths/Strategic Metals ETF (REMX) has been one of the best performing funds in its category over the past several months.

The ETF provides investors with access to the performance of companies involved in the refining, production, and recycling of rare earths and strategic metals and minerals.

REMX hit a new 52-week high of $124 in Wednesday's U.S. trading session. the spike in REMX's value in recent months has been driven by rising stock prices in the sector.

Given the accelerated shift to new technologies such as electric vehicles (EVs), there is a huge demand for rare earth metals. According to a recent report, approximately 27% of rare metals are currently used to produce new magnets, which are a key component of EVs.

The VanEck Rare Earths/Strategic Metals ETF is still a strong product despite being down nearly 3% in the last trading session. Since the beginning of the year, REMX has increased in value by more than 80%, making it one of the best performing ETFs in the U.S.

The technical indicators for VanEck Rare Earth/Strategic Metals ETF are currently strong. It is trading above its 50-day moving average of $113, indicating strong support above the $110 level. In addition, the MACD line remains above neutral territory, although it has declined recently. the RSI is at 59, indicating that REMX is entering overbought territory. If the ETF can maintain its recent momentum, its value could hit the $135 mark by the end of the year.

Exchange-traded funds (ETFs) hold a collection of securities—such as stocks—that often track an underlying index. While they are similar to mutual funds in some ways, ETFs are different in that they are listed on exchanges and can be traded throughout the day like traditional stocks.

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