HANetf launches rare-earths ETF excluding China

HANetf launched the Sprott Rare Earths Ex-China UCITS ETF on Oct. 8. The firm describes it as the first UCITS ETF focused on companies involved in rare-earth production outside China.

The fund tracks the Nasdaq Sprott Rare Earths Ex-China Capped Index. The index selects global companies with significant exposure to the rare-earth supply chain, measured through their revenues or assets. It excludes Chinese securities and is rebalanced every quarter.

The strategy covers mining, separation, refining and production, along with companies developing rare-earth supply chains outside China. Its largest holdings include MP Materials, Lynas Rare Earths, USA Rare Earth, Sunrise Energy Metals and Neo Performance Materials.

Rare earths are a group of 17 metallic elements used in permanent magnets for electric vehicles, wind turbines and defence systems. They are also used in equipment for data centres, communications infrastructure, semiconductors, robotics and other advanced technologies.

China accounts for 69% of global rare-earth mining and 91% of rare-earth metal refining, according to the U.S. Geological Survey. The country has used its position in the supply chain as a trade lever, including in October 2025.

Western governments have introduced measures to increase rare-earth production outside China. These include price floors, financing commitments and offtake agreements for non-Chinese producers.