How U.S. Policy Powers Critical Mineral Momentum

Core Insights - The critical minerals and materials sector is experiencing increased investor interest as a hedge against inflation, outperforming traditional stocks and bonds during inflationary periods [1] - Recent U.S. government policies, including a $1 billion stockpiling initiative by the Pentagon, are expected to benefit critical materials companies and reduce competition from low-cost imports [1] - The Sprott Critical Minerals ETF (SETM) offers investors global exposure to the critical minerals sector, which is timely given the current macroeconomic uncertainties in the U.S. [2] Government Policy Impact - The U.S. government is taking steps to bolster the critical materials sector, including plans to stockpile critical minerals to enhance national reserves and counter China's market dominance [1] - Treasury Secretary Scott Bessent indicated intentions to establish price floors for various critical materials, potentially supporting domestic companies [1] Investment Performance - The Sprott Critical Minerals ETF (SETM) has shown strong performance, with a year-to-date net asset value (NAV) increase of 78.54% as of October 31, 2025 [3]