Sprott, HANetf launch ex‑China rare earths UCITS ETF

HANetf has launched the Sprott Rare Earths Ex‑China UCITS ETF, ticker REXC, with a total expense ratio of 0.65%. The fund aims to give European investors exposure to companies domiciled outside China that derive most of their revenue or assets from mining, separation, refining or production of rare earth elements. REXC seeks to track the Nasdaq Sprott Rare Earths Ex‑China Capped Index (NSREXCU). The index screens companies for material rare earth exposure as measured by revenue or assets and excludes securities domiciled in China and listed as China A‑Shares, B‑Shares, H‑Shares, N‑Shares, Red Chips, P Chips or S Chips. Constituents are rebalanced quarterly and the index is reconstituted semi‑annually. Rare earths are a group of 17 metallic elements used for their magnetic, optical and chemical properties. They are inputs for permanent magnets in electric vehicles, wind turbines and defence systems, and are used in components for data centres and communications equipment. Economically viable deposits are limited and the process to separate the elements is technically complex and energy intensive. Supply chains remain concentrated in China. The International Energy Agency reported that in 2024 China produced 91% of global refined output of magnet rare earths and 94% of sintered permanent magnet production. Chinese export controls have led governments and manufacturers to seek alternative sources and to create policy measures intended to support production outside China. In July 2025 MP Materials reached a ten‑year agreement with the US government that sets a price floor of $110 per kilogram for neodymium‑praseodymium products, which are key inputs for permanent magnets. Sprott has said such arrangements can improve revenue visibility for producers and support capacity investment, while companies remain exposed to financing, operational and market risks. Sprott describes REXC as a pure‑play strategy focused on firms closely tied to development of rare earths supply chains outside China. HANetf notes the UCITS structure provides European investors with focused access to those firms and complements Sprott’s existing materials products on uranium, copper and silver. John Ciampaglia, chief executive of Sprott Asset Management, described rare earths as intersecting national security, energy security and technological leadership and said developed‑market governments are moving to secure supply chains outside China. Hector McNeil, co‑founder and co‑CEO of HANetf, added that REXC offers European investors a focused way to access companies involved in developing ex‑China rare earths supply chains and that the fund expands the range of materials exposures available on their platform.