Brazil's B3 launches rare‑earth ETF to give investors exposure to critical minerals

Brazil's primary stock exchange B3 introduced the RARA11 exchange‑traded fund, managed by Investo, to provide local investors exposure to rare‑earths and other critical minerals. The fund began primary market trading on 26 June and started secondary market transactions on 29 June. RARA11 replicates VanEck's REMX ETF and tracks the MVIS Global Rare Earth/Strategic Metals Index, which follows more than 30 companies engaged in rare‑earth and strategic‑metal production worldwide.

The ETF’s portfolio includes firms from China, Australia, the United States, Canada and Chile, such as Albemarle, Pilbara Minerals, China Northern Rare Earth, MP Materials and Lynas Rare Earths. Its launch coincides with heightened investor interest in minerals essential for electric‑vehicle batteries, wind‑turbine generators, medical equipment, electronics and defense systems, as governments and companies seek to diversify supply chains that are currently dominated by China. While offering new investment opportunities, the sector remains volatile and sensitive to policy shifts and supply‑chain constraints.