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Materials ETF (REMX) Hits New 52-Week High
For investors seeking momentum, VanEck Rare Earth/Strategic Metals ETF (REMX - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 124% from its 52-week low price of $54.83/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
REMX in Focus
VanEck Rare Earth/Strategic Metals ETF offers exposure to the overall performance of companies involved in producing, refining and recycling of rare earth and strategic metals and minerals. The product charges 20 basis points in annual fees (see: all the Material ETFs here).
Why the Move?
The rare earth segment of the broad materials sector has been an area to watch lately given an accelerating shift to new technologies such as electric vehicles (EVs). About 27% of rare metals are used in the production of neomagnets, which are the essential components in EVs.
More Gains Ahead?
It seems that REMX might remain strong given a weighted alpha of 107.28 and a 20-day volatility of 36.7%. As a result, there is definitely still some promise for risk-aggressive investors who want to ride on this surging ETF.