A metal exchange-traded fund (ETF) is an investment vehicle that holds shares of metal mining companies or invests in metal futures contracts. Metals are key raw materials behind infrastructure, manufacturing, and numerous emerging energy technologies. This explains why demand for various metals—from copper and iron ore to lithium and rare earths—tends to grow cyclically over time.
For investors who wish to gain broad exposure to the metals sector but are reluctant to pick individual stocks, metal ETFs offer a simple investment method. Such funds typically invest in mining companies and metal producers, with some funds also involving metal futures.
The following are three major non-precious metal (industrial metal, strategic metal, and rare earth metal) ETFs worth watching in 2026:
– SPDR Series Trust – State Street SPDR S&P Metals & Mining ETF (NYSEMKT:XME): $112.71
– iShares – iShares MSCI Global Metals & Mining Producers ETF (NYSEMKT:PICK): $60.88
– VanEck ETF Trust – VanEck Rare Earth And Strategic Metals ETF (NYSEMKT:REMX): $93.20
This ETF provides investors with exposure to metal and mining stocks by tracking the S&P Metals and Mining Select Industry Index. It holds shares of mining companies in sub-sectors including aluminum, coal and consumable fuels, copper, diversified metals and mining, gold, precious metals and minerals, silver, and steel. As of mid-2026, the fund holds a total of 37 stocks, with its top five holdings being: Alcoa (4.7%), Nucor (4.6%), Freeport-McMoRan (4.6%), Warrior Met Coal (4.6%), and Reliance (4.5%).
The fund employs an equal-weight strategy, offering precise exposure to the U.S. metals and mining sector (including precious metals). Its metal sector breakdown is as follows: steel 32%, gold 17.9%, coal and consumable fuels 17.6%, diversified metals and mining 13.6%, aluminum 10.2%, copper 4.6%, and silver 4%. The expense ratio is 0.35%, making it suitable for investors who want to focus on the U.S. metals sector.
This ETF provides investors with precise exposure to the global metals and mining industry (excluding precious metals). As of mid-2026, it holds a total of 245 mining stocks, with its top five holdings being: BHP Group (12.2%), Rio Tinto (6.9%), Freeport-McMoRan (5.8%), Glencore (4.7%), and Vale (3.8%).
The fund employs a market-cap-weighted approach, covering the global non-precious metal mining sector. Its sector breakdown is as follows: diversified metals and mining 50.6%, steel 25.3%, copper 13.7%, aluminum 6.4%, precious metals and minerals 3.5%. The expense ratio is 0.39%, making it suitable for investors who want to invest in the world’s largest non-precious metal mining companies.
This ETF provides investors with precise exposure to companies that produce, refine, and recycle rare earth and strategic metals and minerals. As of mid-2026, it holds shares of more than 30 rare earth and strategic metal companies, with its top five holdings being: Albemarle (8.6%), Lynas Rare Earths (8.3%), China Northern Rare Earth (SHSE:600111, 7.1%), Pilbara Minerals (7%), and Ganfeng Lithium (5.7%).
This fund allows investors to hold a portfolio of companies focused on important mineral materials used in technology and green energy sectors, with an expense ratio of 0.58%.
Metal ETFs provide investors with a practical tool to participate in the long-term demand growth for materials needed for infrastructure, manufacturing, and new energy technologies. However, the metals sector is cyclical and highly volatile. For most investors, holding metal ETFs as a small, diversified position within an investment portfolio—rather than as a core holding—is a more prudent strategy.
