Move Over, Magnificent 7: This 1 Rare Earth ETF Is Winning Over Wall Street Now

Core Viewpoint - The dominance of the "Magnificent 7" tech companies is fading as the Federal Reserve's rate cuts shift focus towards "real economy" sectors, including metals, energy, and raw materials [1][2]. Group 1: Market Dynamics - The Federal Reserve has initiated a series of rate cuts, including a 25-basis-point reduction in September, with more expected before year-end, altering the tone of U.S. equities [1]. - The cuts have not sparked a tech boom but have instead accelerated a rotation into sectors driven by production and resource security [2]. Group 2: Investment Opportunities - The SPDR S&P Metals & Mining ETF (XME) has surged over 75% this year, outperforming the S&P 500's 14% increase and the performance of the Magnificent 7 tech giants [3]. - XME represents a shift towards hard assets, suggesting a potential new bull run rooted in real assets rather than digital valuations [3]. Group 3: ETF Overview - The SPDR S&P Metals & Mining ETF, managed by State Street Investment Management, launched in June 2006, tracks the S&P Metals & Mining Select Industry Index, focusing on U.S. companies in metals, mining, and mineral processing [4]. - XME encompasses the entire metals value chain, including steel, copper, rare earths, and coal, employing an equal-weighted approach to mitigate overconcentration risk [5].