VanEck Rare Earth and Strategic Metals ETF Is Focused on a Hot Sector, Which is Good and Bad

Idiosyncratic risk is, basically, the risk associated with picking just one stock. There’s no way to know exactly what could go wrong with one business. Which is why exchange-traded funds (ETFs) like VanEck Rare Earth and Strategic Metals ETF (REMX0.41%) exist. Diversified ETFs let you buy a portfolio of stocks so you don’t have to worry about the risk of owning just one …

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