Strategic Metals ETFs: Powering Innovation and Delivering Returns in 2026
Investors seeking exposure to the burgeoning tech and energy sectors are increasingly turning to exchange-traded funds (ETFs) focused on strategic and critical materials. In 2025, top-performing ETFs often capitalized on angles related to innovation and metals, driven by surging demand for data centers powering artificial intelligence and a significant rally in precious metals. As we head into 2026, analysts suggest these funds remain a compelling option, particularly those positioned within the strategic materials space.
These funds offer indirect exposure to the materials and metals essential for continued technological advancement, and are poised to benefit as long as demand remains robust. Four standout ETFs from 2025 deserve a closer look.
The Proshares S&P Global Core Battery Metals ETF (NYSE:ION) is a targeted play on the electric vehicle (EV) revolution and broader battery technology. This fund holds over 50 stocks globally involved in the battery supply chain, with nearly 31% of its assets invested in Chinese companies, alongside significant holdings in Australian and Canadian firms.
EV battery technology is heavily reliant on metals like lithium and cobalt, and ION strategically targets companies involved in the mining and production of these vital materials. The fund’s portfolio is also positioned to benefit from the increasing use of lithium in other sectors, including aerospace and consumer electronics.
ION experienced a remarkable surge of over 130% in the last 12 months and has continued its strong performance into 2026, climbing approximately 9% in the first week of the year. This impressive growth may offset its relatively high expense ratio of 0.58%.
A Broad Brushstroke: Global X Disruptive Materials ETF (DMAT)
For investors seeking a wider scope, the Global X Disruptive Materials ETF (NASDAQ:DMAT) invests in companies producing metals and materials used in a variety of disruptive technologies. These include robotics, fuel cells, and green energy initiatives, all of which require a combination of rare earth metals, palladium, platinum, zinc, and manganese.
DMAT’s portfolio of 50 holdings boasts global reach, with a concentrated focus on approximately 10 key names. Similar to ION, Chinese companies represent the largest portion of the ETF’s assets, followed by firms based in the U.S., South Africa, and the United Kingdom. With a one-year return exceeding 113%, DMAT has significantly outperformed the market, and its expense ratio of 0.59% is only slightly higher than ION’s.
Focused on Rare Earths: VanEck Rare Earth and Strategic Metals ETF (REMX)
The VanEck Rare Earth and Strategic Metals ETF (NYSE:REMX) takes a more focused approach, concentrating specifically on rare earth metals like cerium. These metals are crucial components in a wide range of tech products, including smartphones, electronic displays, and defense systems, making them highly valuable.
Due to the limited number of publicly traded rare earth mining companies, REMX maintains a relatively narrow portfolio of just over two dozen names, with a few companies – such as Albemarle (NYSE:ALB) – holding significant weight. While this concentration may introduce some volatility, the fund has delivered strong returns, more than doubling in value over the past year amid consistent demand.
Diversification and Broad Exposure: Sprott Critical Materials ETF (SETM)
The Sprott Critical Materials ETF (NASDAQ:SETM) offers the most diversified portfolio among the funds examined, holding nearly 130 positions in companies spanning precious metals miners, specialized metals producers, and more. Lithium producers constitute over a quarter of the basket, with significant allocations also dedicated to companies focused on uranium, copper, rare earths, and silver.
This broad purview comes with a comparatively higher expense ratio of 0.65%, but SETM’s diverse holdings allow it to benefit from sustained interest across multiple industries and sectors. The fund surged by approximately 105% in the last year and has continued its upward trajectory in 2026, gaining an impressive 11% in the first week of the year.
As demand for these critical materials continues to rise, these ETFs offer investors a strategic pathway to participate in the ongoing technological revolution.
