ETF Idea REMX: Invest in these metals that are vital for ad | FSMOne SG - Research Highlights

ETF Idea

REMX: Invest in these metals that are vital for advanced technologies

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• We are bullish on the structural growth story for rare-earth and strategic metals (RESMs), due to their widespread usage in emerging green technologies like electric vehicles and renewable energy.

• Traditional end-uses of RESMs, such as catalytic converters and electronic devices, will continue to form the backbone of steady growth in RESM demand.

• Due to the widespread usage of RESMs, countries are moving towards greater self-reliance. This push towards self-reliance will likely be accelerated by the recent Russia-Ukraine War, which has exposed Europe’s over-reliance to Russian energy.

• The VanEck Rare Earth/Strategic Metals ETF (NYSE:REMX) gives investors exposure to companies that supply these RESMs.

• Using a fair PE ratio of 20X, we project a target price of USD170 for REMX, giving an upside potential of +47% by FY24.

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: VanEck Rare Earth/Strategic Metals ETF (NYSE:REMX)