Sprott Asset Management recently rolled out a new ETF aimed squarely at one of the market's most geopolitically sensitive supply chains, launching the Sprott Rare Earths Ex-China ETF (NASDAQ:REXC).
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The fund offers targeted exposure to companies involved in the mining, refining and production of rare earth elements, excluding those primarily operating in China, making it the only ETF currently focused on ex-China rare earths, according to the firm.
The launch comes as governments, particularly in the U.S., ramp up efforts to secure alternative supply chains for critical minerals used across artificial intelligence, semiconductors, defense and energy infrastructure. Sprott said the ETF is designed to track the Nasdaq Sprott Rare Earths Ex-China Index, positioning investors to tap into companies expected to benefit from growing policy support and long-term demand.
Key features of REXC:
- Provides pure-play exposure to rare earth companies operating outside China.
- Tracks the Nasdaq Sprott Rare Earths Ex-China Index.
- Covers firms across the value chain, including mining, separation and refining.
- Net expense ratio of 0.65%
- Positioned to benefit from U.S. and allied efforts to build domestic critical mineral supply chains.
- Includes companies like Defense Metals Corp., developer of the Wicheeda Rare Earth Project in Canada
The firm's experience in the space, including its $2.2 billion Sprott Uranium Miners ETF (NYSE:URNM), underscores its focus on strategic materials tied to energy and national security themes.
The fund's debut highlights growing investor interest in diversifying away from China's dominance in rare earths, as policymakers and markets increasingly align around securing resilient, Western-backed supply chains.
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