VanEck Rare Earth/Strategic Metals ETF Reaches New Yearly High
2021 has seen an influx of funds into ETFs as investors seek to diversify their investments. The rally experienced by ETFs has resulted in a large percentage of them reaching new all-time highs in recent weeks.
REMX Trades Above $124
The VanEck Rare Earth/Strategic Metals ETF (REMX) has been one of the best performing funds in its category over the past few months. The ETF offers investors exposure to the performance of companies involved in the refining, producing and recycling of rare earth and strategic metals and minerals.
REMX hit a new 52-week high of $124 during the US trading session on Wednesday. The fund charges 20 basis points in annual fees, making it an affordable ETF in this space. REMX’s surge in value in recent months has been due to the increase in prices of stocks in that sector.
There is a huge demand for rare earth metals, given an accelerating shift to new technologies such as electric vehicles (EVs). According to the latest reports, roughly 27% of rare metals are currently used in the production of neomagnets, which are crucial components in electric vehicles.
REMX reached a new 52-week high of $124 before retreating and ended the day trading just above $119.
REMX Could Rally Higher
The VanEck Rare Earth/Strategic Metals ETF remains a strong product despite dipping by nearly 3% during the last trading session. Since the start of the year, REMX’s value has increased by more than 80%, making it one of the best performing ETFs in the United States.
REMX’s technical indicators are strong at the moment. It is trading above its 50-day moving average of $113, showing that it has strong support just above the $110 level. Furthermore, the MACD line remains above the neutral zone despite its recent dip. The RSI of 59 shows that REMX is heading into the overbought region.
The ETF’s value could touch the $135 mark before the end of the year if it can maintain its recent momentum.
This article was originally posted on FX Empire
