Procure ETF invests in disaster recovery


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ETFs focused on specific themes provide liquidity and access to potentially profitable business that is not captured by broader market indices and are often difficult to trade through individual companies. These thematic funds allow investors to broaden their horizons and refine their portfolio’s exposure by capturing niche growth segments of the market.

The Procure Disaster Recovery Strategy ETF (Nasdaq:FEMA) is a unique thematic product that invests in companies engaged in the recovery and mitigation of natural disasters ranging from weather incidents to earthquakes. It may not seem like a typical growth industry, but the changing dynamics of Earth’s climate have accelerated the volume and scale of natural disasters. According to the National Centers for Environmental Information, the United States has experienced 323 weather and climate disasters since 1980 at a cost of nearly $2.2 trillion. And the US government estimates that floods, droughts, wildfires and hurricanes exacerbated by climate change could produce annual damages of around $2 trillion a year by the end of the century. Globally, the UN predicts 560 disasters a year by 2030.

The FEMA ETF seeks to track the equally weighted VettaFi Natural Disaster Recovery and Mitigation Index, which tracks a portfolio of companies engaged in recovery from natural disasters, such as hurricanes, wildfires, floods or storms. earthquake. Its global portfolio consists of companies with government contracts for natural disaster recovery and mitigation, companies involved in home improvement retail, and companies that are materially engaged in power generators and batteries. emergency/rescue.

The fund’s holdings cover a range of sectors, including engineering and construction, specialist industrial machinery, building materials, industrial products and waste management, among others. The portfolio of approximately 60 stocks is rebalanced quarterly and its expense ratio is 0.75%.

The FEMA ETF could potentially be used by investors in different ways, depending on their strategy. Hedge funds, for example, might consider using this fund as a tactical trade around specific catastrophic events. In addition, it could be considered by insurance companies that have to pay colossal sums following a natural disaster. For retail investors, this could provide new exposure to certain portfolios.

As the United States and other countries brace for the multi-trillion-dollar costs of rebuilding after natural disasters, the companies in this fund’s portfolio may be positioned to benefit from significantly increased demand over the long term. by providing products and services to governments, municipalities, businesses and individuals seeking to prepare for and rebuild from these unfortunate events.


Please consider the Fund’s investment objectives, risks and charges and expenses carefully before investing. This and other important information is contained in the Fund’s simplified prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before investing.

Investing involves risk. Main loss is possible. The Fund is also subject to the following risks: shares of any ETF are bought and sold at market price (not net asset value), may trade at a discount or premium to net asset value, and are not individually redeemed by the funds. Brokerage commissions will reduce returns.

Securities of small and mid capitalization companies may experience significantly greater price volatility, wider spreads between their bid and ask prices and significantly lower trading volumes than securities issued by larger, more established companies. The Fund is not actively managed, so it would not take defensive positions in falling markets unless those positions are reflected in the underlying index. Please refer to the Simplified Prospectus for a more detailed explanation of the principal risks of the Funds. It is not possible to invest in an index.

Risk of natural disaster/epidemic – Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather events in general, and widespread diseases, including pandemics and epidemics, have been and can be very disruptive to economies and markets, negatively affecting individuals. companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment and other factors affecting the value of the Fund’s investments.

Foreign Investment Risks – Foreign securities are generally more volatile, harder to value and less liquid than US securities.

Risk of non-diversification – As the FCP is non-diversified, it may invest a larger percentage of its assets in securities from the same issuer or fewer issuers than a diversified fund, which may expose the FCP to risks related to changes affecting issuers in which the fund invests.

The products are not issued, endorsed, sold or promoted by Nasdaq. Nasdaq makes no warranty as to the legality or suitability of, and assumes no liability. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This product is not associated with or endorsed by the Federal Emergency Management Agency.

FEMA is distributed by Quasar Distributors LLC.


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