FYI: On Wednesday, the U.S.-China trade war took a worrisome turn, when Chinese state media suggested the country could levy new tariffs on U.S. rare earth metal exports, in retaliation for the Trump administration's blacklist of Chinese telecom Huawei.
That would put U.S. tech companies, defense contractors, auto companies and health care firms in a bind. Rare earth metals that have become ubiquitous throughout their supply chains are largely sourced from China. Should rare earth metals prices skyrocket, U.S. firms would either have to cut back on their own production, or cascade higher prices down to the end consumer.
However, one U.S-based ETF would likely gain: the $199 million VanEck Vectors Rare Earth/Strategic Metals ETF (REMX). In fact, REMX has already seen boosted volume and flows over the past two weeks as a result of the trade dispute, with more activity sure to follow.
Regards,
Ted
https://www.etf.com/sections/features-and-news/etf-week-rare-earth-trade-war-winners?nopaging=1
