Procure Holdings LLC subsidiary ProcureAM launched the Procure Disaster Recovery Strategy ETF (FEMA), which begins trading today on the Nasdaq Exchange. FEMA is the first fund to invest in companies worldwide that are engaged in sustainable recovery and risk reduction efforts related to natural disasters.
Since 1980, the United States alone has sustained 323 weather and climate disasters, costing $2.2 trillion dollars in total. By the end of this century, the U.S. government predicts $2 trillion per year in damages from hurricanes, wildfires, floods, droughts, severe storms, and earthquakes.
“The unfortunate reality is natural disasters can strike anywhere at any time and displace millions of people. Without restoration companies there to help us recover and build back, the damage would be even more devastating,” said Andrew Chanin, co-founder and CEO of ProcureAM, in a news release. “The FEMA ETF is an opportunity to invest in critical renewal and recovery efforts.”
The ETF tracks the VettaFi Natural Disaster Response and Mitigation Index, an equal-weighted index comprising four investment categories: climatological, geophysical, hydrological, and meteorological. Index constituents include companies that are materially involved in emergency/backup power generators and batteries, engineering and construction, specialty industrial machinery, building products and materials, as well as waste management, among other areas. Companies that received contracts with the Federal Emergency Management Agency or similar agencies in the last five years also qualify for inclusion in the fund.
“This area of the market has been long overlooked by investors, yet the prevalence of natural disasters in the last several decades and in the future is undeniable,” added Bob Tull, president and co-founder of ProcureAM. “We built ProcureAM with a mission of launching innovative and distinct investing products. The FEMA ETF is emblematic of that mission.”
FEMA has an expense ratio of 0.75% and is rebalanced quarterly.
In addition to FEMA, ProcureAM also introduced the Procure Space ETF (UFO ), the world’s first global ETF to give investors pure-play access to the expanding space industry.
For more news, information, and strategy, visit VettaFi.
vettafi.com is owned by VettaFi, which also owns the index provider for FEMA. VettaFi is not the sponsor of FEMA, but VettaFi’s affiliate receives an index licensing fee from the ETF sponsor.