Market Vectors Rare Earth/Strategic Metals Index ETF (REMX)
Atop the list of best-performing ETFs during the past month is the Market Vectors Rare Earth/Strategic Metals Index ETF (NYSE: REMX). The fund is up 22.33% over the past four weeks, and that’s chiefly due to big developments taking shape in the rare earth space. Recently, one of REMX’s biggest holdings, Molycorp (NYSE: MCP), announced a takeover of Estonia-based rare earth producer AS Silmet. The stock surged on the news, as many investors see the increase production and supply of rare earth minerals from companies in the space as a clear sign that this is the next boom sector.
Rare earth metals are used in the production of hybrid car batteries and other alternative energy devices. The recent surge in oil prices has caused a reexamination of interest in this kind of technology, and hence a surge in the value of stocks in the sector.
At the time of publication, Jim Woods held no positions in any of the ETFs mentioned in this article.