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Sprott's Rare Earth Ex-China ETF REXC | Steve Schoffstall and Jimmy Connor

Jimmy Connor Jul 18, 2026 7:10

Summary

Sprott's Steve Schoffstall outlines REXC, a rare earths ex-China ETF holding 34 companies screened from ~1,000 miners for >=50% rare earth revenue.

China now controls about 69% of rare earth mining and over 90% of refining and magnet production, prompting Western reshoring investment.

Dysprosium prices have spiked from $100 per kilo to $900 per kilo as China tightens rare earth export controls.

REXC's holdings weigh about 48% Australia, 40% United States and 8% Canada, with roughly 38% large cap and the rest mid and small cap.

The fund claims about 96% pure-play rare earth exposure, while some competing 'rare earth' ETFs hold single-digit exposure.

Jimmy Connor's takeaways

  • Top takeaway The host frames scarcity of critical resources — uranium, lithium, copper, and rare earths — as one of the most important supply-side issues facing governments today.
  • He highlights the dysprosium price move from about $100/kg to $900/kg as evidence that China's export restrictions are creating a strong investment case for rare earths.

Steve Schoffstall's takeaways

  • Top takeaway The guest argues that despite the name, rare earths are not geologically scarce — they are rarely found in concentrations that make mining economically viable, which he says is the real bottleneck.
  • He emphasizes that China now controls roughly 69% of rare earth mining and over 90% of refining and magnet production, and is using export controls to restrict access.
  • He cites dysprosium (used in magnets) as a concrete example, saying its price has risen from $100/kg to $900/kg as a result of those restrictions, supporting the sector investment case.
  • The guest frames the policy backdrop as a major tailwind: Western governments are reshore-ing production and offering incentives, which he expects to create opportunities outside China.
  • He positions the new ETF as differentiated versus competing products, arguing many funds marketed as rare earth ETFs are actually diversified or concentrated in other metals, sometimes with single-digit rare earth exposure.