Start 2024 with an Allocation to CRIT

Improving one’s financial health is probably one of the more important New Year’s resolutions that an individual should make.  Investors reviewing their portfolio may want to consider an allocation to the Optica Rare Earths and Critical Materials ETF (NYSE:CRIT).  Why should individuals consider CRIT?

What is CRIT?

The Optica Rare Earths and Critical Materials ETF (NYSE:CRIT) looks to provide exposure to companies involved in the production, processing and recycling of rare earths and critical materials.    

Why Rare Earths and Critical Materials?

Rare Earths and Critical Materials Are Essential Elements in Clean Energy Technologies

• Clean energy technologies utilize many rare earths and critical materials and are more resource intensive, e.g., they require large resource inputs than their fossil fuel-based counterparts[1]
• Rare earths and critical materials are vital components of advanced technologies, including electric vehicles, wind farms, solar panels, batteries, laptop and LCD screens, as well as medical and defense technologies[2]

Rare Earths and Critical Materials are Vital to Economic and National Security

• Supply chain issues have highlighted the fragility of the global supply chain
• The mining and production of many rare earths and critical materials is geographically concentrated, often in countries hostile to Western interests or that are economically and geographically unstable, potentially leading to vulnerabilities in economic and national security1

Efforts to Secure Supply of Rare Earths and Critical Materials May Lead to Positive Supply/Demand Dynamics

• Western governments, including the United States, Canada, Australia, and the European Union, have designated 50+ materials as being critical for national and economic security, with policies aimed at securing their supply[3]
• Both the Trump and Biden administrations have outlined plans to boost national production and processing of rare earths and critical materials[4]
• Demand may need to grow exponentially to satisfy the demand to meet clean energy climate goals[5]

The CRIT ETF Aims to Provide Focused Exposure to the Companies in the Rare Earths and Critical Materials Industries

The Optica Rare Earths & Critical Materials ETF (NYSE:CRIT)  seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the EQM Rare Earths & Critical Materials Index.

The Index is comprised of global public companies deriving significant revenue from rare earths or critical materials production, processing or recycling of rare earths and critical materials.

CRIT may provide an attractive vehicle for individuals to gain exposure to companies in the rare earths and critical materials industries.

[1] The Role of Critical Materials in Clean Energy Transitions, International Energy Agency, May 2021

[2] See the CRIT Investment Case

[3] United States Geological Survey, Natural Resources Canada, European Commission, and Australian Government

websites, February 2021

[4] Rapoza, Kenneth, Trump Signs Executive Order to Protect, Build U.S. Rare Earths Industry, Forbes, 10/1/20; Wilkie, Christina, Biden Administration Announced Plans to Strengthen Critical Supply Chains, CNBC, 6/8/21

[5] See the CRIT Investment Case