Group 1 - The demand for critical minerals and rare-earth elements is expected to increase due to their importance in advanced technologies and national security [2][3] - The U.S. lacks a reliable supply chain for these minerals, which are primarily sourced from China, prompting government investment to develop a more dependable supply chain [3][4] - The Trump administration has invested in key U.S. companies in the critical minerals sector, including Lithium Americas, Trilogy Metals, and MP Materials [4] Group 2 - Mining stocks are considered risky due to high costs and lengthy development processes, making exchange-traded funds (ETFs) a less risky investment option for exposure to critical minerals [6][7] - The long-term supply-demand outlook for critical minerals and rare-earth elements is favorable, which is likely to positively impact stock prices of select companies [7] - The VanEck Rare Earth and Strategic Metals ETF aims to track the performance of companies involved in the production, refining, and recycling of rare earth and strategic metals [8]
Interested in Rare Earth and Critical Minerals Stocks? You Might Consider Buying This ETF