Despite a recent pullback in the previously high-flying rare earth sector, related financial products remained actively traded. As the market's first rare earth industry-themed ETF, Rare Earth ETF (516780) saw a surge in trading volume against the market trend yesterday, with daily turnover reaching 555 million yuan, hitting a new high since October 2025. As of the latest data, the product has attracted cumulative inflows of 742 million yuan over the past month, driving its fund shares and fund size to 1.779 billion units and 3.695 billion yuan, respectively.
Although short-term market conditions have been volatile, the strategic value of rare earths continues to be highlighted in geopolitical competition. As an indispensable core material in advanced manufacturing sectors such as satellites, robotics, and the low-altitude economy, rare earth permanent magnets are often referred to as "military vitamins," with relatively clear and rigid demand. With the global rare earth supply chain tightening, some suppliers for U.S. aerospace and semiconductor companies have already faced material shortages and order rejections. While overseas giants are constrained by raw material shortages, domestic companies deeply involved in the rare earth industry are expected to enter a critical window for transitioning from "domestic substitution" to "global dominance."
Xiangcai Securities noted that the current absolute and relative historical valuation levels of the rare earth sector are supported by loose liquidity, industrial policies, and strategic value positioning, maintaining a relatively high level. Against the backdrop of post-holiday international political instability, China's Ministry of Commerce's ban on exports of dual-use items to 20 Japanese entities has further underscored the strategic importance of key metals like rare earths, potentially boosting market risk appetite for the sector.
It is reported that Rare Earth ETF (516780) and its feeder funds (Class A 014331, Class C 014332) closely track the CSI Rare Earth Industry Index, whose components cover various segments of the industrial chain, including rare earth mining, processing, trading, and application. This makes it an effective tool for investors to capture opportunities in the rare earth industry's development. As of the latest data, the index's top five components are
According to the product's mid-2025 report, as of June 30, 2025, Rare Earth ETF (516780) had 32,100 holders, making it the only rare earth-themed ETF in the market with over 20,000 holders during the same period.
The fund manager of Rare Earth ETF (516780) and its feeder funds (Class A 014331, Class C 014332), Huatai-PineBridge Fund, is one of China's first ETF managers. For years, it has been committed to providing investors with transparent, easily tradable, and low-cost index tool products. Two of its flagship ETFs—Huatai-PineBridge CSI 300 ETF (510300) and Huatai-PineBridge CSI 500 ETF (563360)—are highly popular in the market, currently ranking first in scale among similar ETFs. Their management fee of 0.15% per annum and custody fee of 0.05% per annum are among the lowest tiers for equity index funds in the market.
Investment risks are present, and caution is advised when investing.
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