A fresh push from Washington to secure access to critical minerals could bring fresh investor interest across the U.S. ETF market.
• Sprott Critical Materials ETF stock is trading near recent highs. What’s next for SETM stock?
U.S. President Donald Trump is set to launch a strategic critical minerals stockpile, seeded with $12 billion, Bloomberg News reported Monday, citing people familiar with the matter. The initiative is aimed at bolstering domestic supply chains for minerals deemed essential to national security, manufacturing and advanced technologies.
For ETF investors, the move revives interest in rare earth and critical materials ETFs, a segment that took a shock last week when Reuters reported that the Trump administration is rethinking previous promises to guarantee price floors for domestic critical mineral projects.
Rare-Earth ETFs See Policy-Driven Tailwind
The most direct beneficiaries are ETFs exposed to rare earths and strategic metals. Funds such as the VanEck Rare Earth and Strategic Metals ETF (NYSE:REMX) offer broad exposure to companies involved in mining and processing materials used in defense systems, semiconductors and clean energy infrastructure.
A government-backed stockpile introduces a long-term demand signal, effectively positioning the U.S. as a committed buyer. That policy support could help stabilize sentiment around rare-earth ETFs even if underlying commodity prices remain volatile.
U.S.-based producers are also drawing renewed attention. MP Materials Corp (NYSE:MP), which operates the Mountain Pass rare-earth mine in California, stands out as one of the few significant domestic suppliers and a key holding across several strategic-materials funds. It is a major holding in REMX.
Battery Metals and Mining ETFs Also In Play
Beyond rare earths, ETFs tied to battery materials may benefit if the stockpile includes lithium, nickel, cobalt or graphite. The Global X Lithium & Battery Tech ETF (NYSE:LIT) and the Amplify Advanced Battery Metals and Materials ETF (NYSE:BATT) provide exposure to upstream producers critical to U.S. EV and energy-storage supply chains.
Stocks of companies such as Albemarle Corp (NYSE:ALB), one of the world's largest lithium producers, are increasingly viewed as strategic assets as policymakers focus on securing domestic and allied-nation sources of battery metals.
Broader mining funds like the State Street SPDR S&P Metals & Mining ETF (NYSE:XME) could also see inflows as investors rotate toward U.S.-listed miners aligned with reshoring and resource-security themes.
China Exposure Under Scrutiny
The stockpile plan implicitly highlights U.S. efforts to reduce reliance on China-dominated mineral supply chains. That dynamic may pressure ETFs with significant China exposure, while funds tilted toward U.S., Canadian and Australian producers gain relative appeal.
Sprott Critical Materials ETF (NASDAQ:SETM) has significant exposure to mining companies in Canada, Australia and the U.S., offering a broad play on materials essential to electrification and defense supply chains, with a relatively diversified geographic base.
Additionally, while REMX still holds some China exposure, it also allocates meaningful weight to Australian and U.S. mining and processing firms, helping balance out the concern around China exposure.
Bottom Line
The $12 billion stockpile proposal reframes critical minerals as a policy-backed investment theme, potentially shifting rare earth and mining ETFs from cyclical trades to longer-term strategic allocations.
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