Trade Tariff Threat Boosts Demand for Rare-Earth Metals ETF

The video discusses Vanek's Rare Earth Metals ETF, highlighting its significance due to China's dominance in rare earth metals production. The ETF doesn't hold actual metals but stocks of companies involved in their production. Thematic capture score is used to assess the ETF's accuracy in representing its theme. Despite its name, only 20% of the ETF's revenue comes from rare earth metals. The ETF is better at providing exposure to critical metals like lithium and cobalt. Recent market activity shows increased trading volume and a premium over asset value.

Why are rare earth metals considered important?

• They are used in a wide range of industries.

• They are primarily used in agriculture.

• They are only found in the United States.

• They are abundant and easy to mine.

What is a common misconception about Vanek's Rare Earth Metals ETF?

• It is the largest ETF in the world.

• It is not affected by market fluctuations.

• It holds actual rare earth metals.

• It only invests in Chinese companies.

What does the thematic capture score evaluate in an ETF?

• The ETF's marketing strategy.

• The ETF's environmental impact.

• The ETF's historical performance.

• The ETF's exposure and revenue from a specific theme.

What recent market activity was observed in the ETF?

• A stable trading pattern.

• A complete halt in trading.

• A significant spike in trading volume.

• A decrease in trading volume.

What is one reason for the premium and discount phenomenon in the ETF?

• The ETF's assets are undervalued.

• The ETF's assets are not traded at all.

• The ETF's assets are overvalued.

• The ETF's trading times do not align with the US market.