Rare earth ETFs: HANetf and Sprott list the Sprott Rare Earths Ex-China UCITS ETF on the LSE

The fund invests in companies operating outside China across the rare earths supply chain, specifically in mining, separation, refining and manufacturing. The two companies are presenting it as the first pure-play UCITS ETF dedicated to non-Chinese rare earths.

The launch comes at a time when governments and producers are seeking alternative sources of supply to China. According to the International Energy Agency, cited in the press release, in 2024 China accounted for 91 per cent of global refined rare-earth production for use in magnets.

The fund’s characteristics

The ETF aims to offer targeted exposure to non-Chinese companies active in the rare earths supply chain. The pure-play approach favours companies that derive the majority of their revenue or assets from the rare earths supply chain.

According to reports by Funds Europe and ETF Express, the fund tracks the Nasdaq Sprott Rare Earths Ex-China Capped Index (NSREXCU). The index selects companies based on their exposure to rare earths, measured by revenue or assets, across the mining, separation, refining and manufacturing stages.

Chinese securities are not eligible. Both companies domiciled in China and shares classified as China A-Shares, B-Shares, H-Shares, N-Shares, Red Chips, P Chips or S Chips are excluded. The index is rebalanced quarterly and reconstituted every six months.

Product details

Name: Sprott Rare Earths Ex-China UCITS ETF

Ticker: REXC

Index: Nasdaq Sprott Rare Earths Ex-China Capped Index (NSREXCU)

TER: 0.65%

Platform: HANetf

Partner: Sprott Asset Management

Listing: LSE and other major European stock exchanges, from 23 September 2026

Rebalancing: quarterly; reconstitution: half-yearly

What are rare earths and where are they used?

Rare earths are a group of 17 metallic elements. Their magnetic, optical and chemical properties make them essential for numerous advanced technologies.

Key applications include permanent magnets used in electric vehicles, wind turbines and defence systems. Rare earths are also found in components for data centres and communications infrastructure.

These elements are relatively abundant in the Earth’s crust, but economically viable deposits are less common. Furthermore, the separation processes are technically complex and energy-intensive.

A supply chain that remains concentrated

Global supply chains for rare earths remain highly concentrated. According to the International Energy Agency, in 2024 China accounted for:

91 per cent of global refined rare earth production for magnets;

94 per cent of sintered permanent magnet production.

This concentration, together with the export controls introduced by China, has heightened the urgency for governments and businesses to develop alternative sources. Rare earths are considered essential materials for industrial competitiveness and national security.

Public support and the MP Materials case

Public support for the sector is extending beyond simple supply agreements. It includes measures designed to incentivise investment in production outside China.

In July 2025, MP Materials signed a ten-year agreement with the US government. The agreement provides for a minimum price of $110 per kilogramme for neodymium-praseodymium-based products, which are key components in permanent magnets.

According to the press release, mechanisms of this kind can provide greater revenue visibility and support investment in new production capacity. However, companies in the sector remain exposed to financial, operational and market risks.

John Ciampaglia, Chief Executive Officer of Sprott Asset Management, explained that rare earths lie at the intersection of national security, energy security and technological leadership. Whilst governments in developed markets are strengthening supply chains outside China, Ciampaglia believes that companies operating in the non-Chinese value chain are strategically well-positioned. Sprott said it was delighted to partner with HANetf to offer European investors targeted access to this opportunity via an ETF.

Hector McNeil, Co-Founder and Co-CEO of HANetf, added that the new launch expands the partnership with Sprott. Rare earths, he noted, are central to some of the key investment themes shaping the markets, from defence and energy security to electrification and advanced technologies. REXC offers European investors targeted exposure to companies involved in developing rare earth supply chains outside China and joins the existing Sprott products on the HANetf platform dedicated to uranium, copper and silver. McNeil also emphasised that Sprott continues to expand its European range in partnership with HANetf, making its expertise in critical commodities available to a growing number of investors via the UCITS ETF structure.

The HANetf-Sprott range and the US version

REXC is Sprott’s sixth product on the HANetf platform. As at 18 September 2026, the range had reached a total of $646.90 million in assets under management. The Sprott products already available on the platform are dedicated to uranium, copper and silver.

The UCITS fund follows the strategy already offered in the United States. On 15 April 2026, Sprott launched the Sprott Rare Earths Ex-China ETF on the Nasdaq, under the same ticker symbol, REXC. The US version tracks the Nasdaq Sprott Rare Earths Ex-China Index (NSREXC), whilst the UCITS version tracks the ‘capped’ version of the same index.

Conclusions

With its listing on the LSE, UK investors now have access to a UCITS ETF dedicated to rare-earth companies headquartered or operating outside China. The fund has a TER of 0.65 per cent and tracks an index that excludes all categories of Chinese securities and selects companies based on the proportion of their revenue or assets linked to rare earths.

The key context remains the high concentration of the supply chain in China and the public policies implemented in developed countries to create alternative sources.