Rare-Earth ETF Frenzy Breaks: Leveraged 2X Funds Slide After Trump Deal Rally

Benzinga_recent_news01-30

Rare-earth ETFs flipped sharply lower on Tuesday, underscoring how quickly policy-driven trades can unwind, especially when leverage is involved. After explosive gains last week, both single-stock and...

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After explosive gains last week, both single-stock and...</p>\n\n<a href=\"https://www.benzinga.com/etfs/sector-etfs/26/01/50246476/rare-earth-etf-frenzy-breaks-leveraged-2x-funds-slide-after-trump-deal-rally\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Rare-Earth ETF Frenzy Breaks: Leveraged 2X Funds Slide After Trump Deal Rally</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRare-Earth ETF Frenzy Breaks: Leveraged 2X Funds Slide After Trump Deal Rally\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-30 04:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/etfs/sector-etfs/26/01/50246476/rare-earth-etf-frenzy-breaks-leveraged-2x-funds-slide-after-trump-deal-rally><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Rare-earth ETFs flipped sharply lower on Tuesday, underscoring how quickly policy-driven trades can unwind, especially when leverage is involved. After explosive gains last week, both single-stock and...</p>\n\n<a href=\"https://www.benzinga.com/etfs/sector-etfs/26/01/50246476/rare-earth-etf-frenzy-breaks-leveraged-2x-funds-slide-after-trump-deal-rally\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"USAX","symbol_name":"Tradr 2x Long USAR Daily ETF","start_time":0,"source_url":"https://www.benzinga.com/etfs/sector-etfs/26/01/50246476/rare-earth-etf-frenzy-breaks-leveraged-2x-funds-slide-after-trump-deal-rally","article_id":"2607055439","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2026/01/29/Rare-Earth.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/etfs/sector-etfs/26/01/50246476/rare-earth-etf-frenzy-breaks-leveraged-2x-funds-slide-after-trump-deal-rally","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2607055439","pubTimestamp":1769718060,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"After explosive gains, leveraged rare-earth ETFs are sliding—highlighting the risks of trading geopolitics with leverage.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"USAX":"Tradr 2x Long USAR Daily ETF","USAR":"USA Rare Earth Inc.","USGG":"Leverage Shares 2X Long USAR Daily ETF","BK4588":"碎股","BK4550":"红杉资本持仓","BK4168":"多种金属与采矿","BK4585":"ETF&股票定投概念"},"translate_title":"稀土ETF狂潮爆发：特朗普交易反弹后杠杆基金2倍下滑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"USGG":1.9,"USAX":1.88,"USAR":1.95},"content_text":"Rare-earth ETFs flipped sharply lower on Tuesday, underscoring how quickly policy-driven trades can unwind, especially when leverage is involved. After explosive gains last week, both single-stock and diversified rare-earth ETFs retreated alongside a steep drop in shares of USA Rare Earth Inc. (NASDAQ:USAR), highlighting the risks of trading geopolitics through high-octane ETF products.\nThe sharpest moves once again came from leveraged ETFs tied to USAR. After jumping nearly 65% last week, the Leverage Shares 2X Long USAR Daily ETF (NASDAQ:USGG) and the Tradr 2X Long USAR Daily ETF (BATS:USAX) were both deeply in the red on Tuesday with around 30% declines, mirroring a roughly 15% decline in USAR shares.\nThese ETFs are designed to deliver twice the daily return of the underlying stock, a structure that magnifies losses just as aggressively as gains. As momentum faded following last week's rally, the downside move accelerated, reinforcing their role as short-term trading tools rather than long-term exposure vehicles.\nLast week's surge in USAR was fueled by a major federal commitment to USA Rare Earth. The U.S. government announced its plans for a $277 million in direct funding and a $1.3 billion loan, while the Department of Commerce will receive 16 million shares in the company. The deal, closed on Jan. 29, is aimed at strengthening domestic supply chains and reducing reliance on China, the world's dominant producer of rare earths.\nSecretary of Commerce Howard Lutnick said the investment would help ensure U.S. mineral independence, framing rare earths as a national security priority. USA Rare Earth, which operates a manufacturing facility in Stillwater, plans to begin mining operations in West Texas by 2028, targeting production of up to 40,000 tons of rare-earth materials per day.\nStill, the selloff suggests investors are reassessing near-term expectations. The company continues to face operating losses and negative cash flow, and production remains at least a couple of years away. These factors may have resurfaced as the initial policy-driven enthusiasm cooled.\nREMX gained more than 120% last year and remains up roughly 20% year-to-date, but the pullback highlights how even diversified ETFs are not immune to sentiment shifts in this volatile space.\nThe rapid swing from surge to selloff illustrates a growing divide within the rare-earth ETF universe. Leveraged ETFs are increasingly used to trade policy headlines and geopolitical momentum, while diversified funds offer a longer-term way to express views on supply-chain shift.\nAs Washington keeps rare earths at the center of its industrial strategy, ETFs will likely remain the market's preferred vehicle, but recent moves show that, with leverage, the ride can be just as fast on the way down.\nPhoto: Shutterstock","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2607055439","isCrawlerRequest":true}