Believe It: Malaysia Election Result Boosts Rare Earths ETF

It is safe the Market Vectors Rare Earth/Strategic Metals ETF (NYSE:
REMX
) was not the first ETF traders and investors were looking to as a way of profiting from Malaysia's election results, but there is no denying the downtrodden fund is up nearly 2.3 percent Monday. What might come as even bigger surprise regarding REMX, an ETF that at the start of trading Monday was off nearly 22 percent year-to-date, is which one of its holdings is helping boost the fund. That honor goes to Australia-based Lynas (OTC:
LYSCF
). At first glance, Lynas would seem like an unlikely, perhaps albeit temporary, savior for the rare earths ETF. After all, the shares hover around 60 cents and that is with the benefit of today's 15.4 percent surge on volume that is already two-and-a-half times the daily average. Still, Lynas is loving the results of Malaysia's elections, held over the weekend, that saw
Prime Minister Najib Razak retain power
according to the BBC
according to the Arizona Daily Star
. Environmental concerns aside, the $128.2 million REMX is having a nice day for what feels like the first time in an eternity. Lynas, a 60-cent stock that is the ETF's third-largest holding with a weight of 6.9 percent, is the reason. For more on Malaysia, click
here
.
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