##  [# Metals ETFs Gain on Rare Earths, Tariff-Induced Shortages](/sections/data-dive/metals-etfs-gain-rare-earths-tariff-induced-shortages) 

 

# Metals ETFs Gain on Rare Earths, Tariff-Induced Shortages

 

 

\- XME has gained 29% over the past three months, topping the S&P 500.  
\- Metals companies are rising as tariffs create shortages.  
\- XME’s biggest holding, rare-earths producer MP, is rising on US investment.



 

 

 

 

 [![RonDay](/sites/default/files/styles/author_image_icon/public/2024-01/etf.com_Author_RonDay.png?itok=XBj72rrJ "RonDay")](/contributors/ron-day) 

[By Ron Day](/contributors/ron-day)

 Jul 18, 2025

 Edited by: David Tony

 

 

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Exchange-traded funds holding stocks of metals companies have soared over the past three months, in part on speculation that the United States' on-again, off-again tariff regime is creating shortages and thanks to huge investments in the biggest domestic rare-earths company.

The biggest [metals](/topics/metals) exchange-traded fund, the $2.1 billion [**SPDR S&amp;P Metals &amp; Mining ETF (XME)**](/xme), has jumped 33% over the past three months through July 15, outpacing the S&amp;P 500’s 17% gain as measured by the [**Vanguard S&amp;P 500 ETF (VOO)**](/voo). It's pulled in $152.9 million over that period.

Metals producers are the fifth-best performing sector among 30 sectors and industries tracked by etf.com’s [Markets Monitor](https://www.etf.com/markets-monitor/etf-sectors?d=threeMonths-XME-XLK-SMH-TAN-PBW) over the past three months. Clean energy, as tracked by the [**Invesco WilderHill Clean Energy ETF (PBW)**](/pbw), leads with a 46% three-month gain.

Another surging metals ETF is the $55.9 million [**Sprott Energy Transition Materials ETF (SETM)**](/setm), adding 33% since mid-April.

## XME, SETM Hold Rare-Earths Producer MP Materials

Both XME and SETM’s hold [MP Materials Corp. (MP)](/mp) as their top allocation. MP, owner of the only operating rare-earths mine in the U.S., has more than doubled in the last 90 days thanks to [Apple Inc. (AAPL)](/stock/aapl) agreeing to buy $500 million in magnets and the U.S. Defense Dept. agreeing to buy $400 million in preferred stock.

With China as the world’s biggest rare-earths producer, companies and government entities are aiming for a reliable source of the metals amid a U.S./China tariff battle.

Tariffs appear to be limiting global output of metals, as duties have been threatened or imposed on large metals-producing countries, including Canada, Chile and China. According to data from the London Metals Exchange, inventories of copper, aluminum, zinc and tin have plummeted this year through the end of the second quarter.

### Top Sector &amp; Industry ETFs  


![Top Sector, Industry ETFs](/sites/default/files/inline-images/image_422.png)

*Source: etf.com Markets Monitor &amp; FactSet Data*

*etf.com’s Markets Monitor helps investors and financial advisors analyze ETF market trends across sectors, global equities, bonds and commodities—powered by clear, actionable data.* [*Give it a try today.*](https://www.etf.com/markets-monitor)

“Tariffs on aluminum, steel and copper have lifted U.S. producers of those metals,” etf.com Senior Analyst Sumit Roy said. “Additionally, the big government investment in MP Materials, the United States' only rare-earths producer, has sent shares of that stock surging.”

 
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 [ Ron Day Contributing Editor ](/contributors/ron-day) 

 

 

  Ron Day is Contributing Editor at etf.com. He joined the company in October 2022 and has served as Managing Editor, deputy managing editor and…   [View Bio](/contributors/ron-day)

 



 

 


 Related Topics  [Metals](http://www.etf.com/topics/metals) 

 [Metals &amp; Mining](http://www.etf.com/topics/metals-mining) 

 [China](http://www.etf.com/topics/china) 

 [Canada](http://www.etf.com/topics/canada) 

 [Chile](http://www.etf.com/topics/chile)