Up 100% in the Past 6 Months, Is This Rare Earth Metals ETF Still a Buy?

Core Insights - The Vaneck Rare Earth Strategic Metals ETF (REMX) has more than doubled in value since April, raising questions about its future performance and sustainability of returns for shareholders [1] - The political dynamics surrounding rare earth metals have created a supply-demand imbalance, with the U.S. having high demand and China controlling the supply [3] Industry Overview - Rare earth metals are not necessarily rare in abundance but are difficult to mine due to their diffuse distribution across the globe [2] - These metals are essential for various technologies, including smartphones, computers, electric vehicles, and wind turbines, highlighting their critical role in modern industries [2] ETF Performance - REMX, despite its significant growth, has only $1.3 billion in assets, indicating potential for further investment and growth in the sector [4] - The ETF's price has room to grow, with a potential rally of 50% still not reaching its five-year high of around $130 per share [5] - Historical performance shows that REMX is recovering to levels seen about a decade ago, suggesting further upside potential, albeit with expected volatility [6]