SETM: The Critical Materials Trade Has Already Re-Rated, And Most Advisors Still Aren't Looking
The Sprott Critical Materials ETF (SETM) has surged approximately 135% over the past twelve months, driven by strong performance in mining and refining companies focused on critical materials like uranium, copper, lithium, rare earths, and silver. Despite this re-rating, the article notes that many financial advisors have not yet recognized or acted on the shift. Geopolitical developments, including China's expanded rare earth export controls and the Pentagon's investment in MP Materials, are cited as key drivers in the sector's growing strategic importance.
- ▪SETM has risen roughly 135% over the trailing twelve months.
- ▪China expanded its rare earth export controls to include twelve elements in the previous fall.
- ▪The Pentagon acquired a 15% equity stake in MP Materials with a price floor agreement.
- ▪SETM provides exposure to a diversified basket of critical materials including uranium, copper, lithium, rare earths, and silver.
- ▪The article suggests that most financial advisors have not yet adjusted their strategies to reflect the re-rated critical materials sector.
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