Procure Disaster Recovery Strategy ETF (NASDAQ:FIXT) Up 35% Since Launch
The Procure Disaster Recovery Strategy ETF (NASDAQ:FIXT) has seen a 35.02% increase in its net asset value (NAV) as of April 30, 2024, since its launch two years ago. The ETF focuses on companies involved in disaster recovery, including infrastructure and mitigation services. Key holdings include Generac, Home Depot, and Lowe's, which provide essential products and services for disaster events. The management fee for FIXT was reduced on Earth Day to support investors interested in this market. Despite natural disaster risks, the increasing need for resilient infrastructure presents a unique investment opportunity.
- 35.02% increase in NAV since launch.
- Focus on companies engaged in disaster recovery and mitigation.
- Key holdings include Generac, Home Depot, Lowe's, and others providing essential products and services.
- Management fee reduced on Earth Day to support investor interest.
- Increasing frequency and intensity of natural disasters underline the importance of the ETF's focus.
- Potential risks from natural disasters and environmental factors.
- Foreign securities in the ETF may be more volatile and less liquid.
- The ETF is not actively managed, which can be a disadvantage in declining markets.
- Shares may trade at a discount or premium to NAV, affecting returns.
- Securities of small- and mid-cap companies may experience higher price volatility and lower trading volumes.
Insights
The 35% increase in the NAV of the Procure Disaster Recovery Strategy ETF (FIXT) since its launch is significant. This growth suggests that the ETF is benefiting from the rising incidence of natural disasters and the subsequent demand for recovery and mitigation services. This ETF provides exposure to companies actively involved in disaster recovery, such as Generac and Home Depot, which likely contributes to its robust performance. The reduction in management fees further enhances its appeal by lowering the cost burden on investors, potentially increasing fund flows.
It's essential to consider the long-term growth potential given the predicted increase in natural disasters. However, investors should be cautious of market volatility and economic disruptions that can affect the underlying companies. As the ETF is not actively managed, it might not adapt swiftly to market downturns, which can impact returns.
The Procure Disaster Recovery Strategy ETF addresses a niche but growing market segment focused on disaster recovery and mitigation. As natural disasters become more frequent and severe, the demand for products and services from companies within the ETF's portfolio is expected to rise. This increases the relevance of FIXT as an investment vehicle for those looking to capitalize on this trend. The ETF's holdings, such as Eaton and John Wood Group, are pivotal in building resilient infrastructure, highlighting its strategic value.
While this ETF presents a unique opportunity, investors should understand the associated risks, including those related to small- and mid-cap companies, which often experience higher volatility. Additionally, the international exposure brings in foreign investment risks, which may affect the fund's performance.
LEVITTOWN, PA / ACCESSWIRE / June 3, 2024 / FIXT, the Procure Disaster Recovery Strategy ETF, experienced a
FIXT tracks a global portfolio of companies engaged in recovering from natural disasters, such as hurricanes, wildfires, floods, and earthquakes.
Globally, natural disasters have seen increasing economic losses compared with averages from earlier this century. Researchers expect the increasing frequency and intensity of extreme weather events will result in even more billion-dollar disasters unless steps can be taken to reduce their impact. Recent estimates have found that mitigation measures can save up to
"To minimize the financial and human impact of natural disasters, it is imperative to focus on investing in infrastructure designed for 21st century climate expectations," says Andrew Chanin, co-founder and CEO of ProcureAM. "Communities, individuals, and businesses are looking at the products and services needed for natural disaster prevention, mitigation, and recovery. The holdings in FIXT present a direct line to the companies providing these products and services."
Created two years ago, FIXT addresses an overlooked segment of the market. Natural disasters have become a constant, and to reduce loss of life and economic impacts, communities need to invest in resilient infrastructure and implement effective recovery operations. Preparing for disasters with disaster mitigation products is a responsibility for prudent individuals and governments worldwide.
Investing in FIXT means investing in the corporations that are essential to disaster preparedness and recovery. Holdings such as Generac*, Home Depot*, and Lowes* are crucial for equipment and home repair products for disaster events. Eaton*, John Wood Group*, and AECOM* provide engineering and consulting services to build resilient infrastructure and manage recovery efforts. Flooding emergencies require adequate water drainage, purification, and preparatory water systems offered by Arcadis*, NV5*, and Balfour Beatty*.
The management fee for FIXT was dropped on Earth Day (April 22, 2024) to show our commitment to disaster prevention and recovery.2 The lower fee will make it easier for investors to support companies involved in the essential, but too often overlooked, natural disaster recovery and prevention market.
For more information, visit www.ProcureETFs.com
About ProcureAM
ProcureAM, LLC (ProcureAM) is an innovative exchange-traded product (ETP) issuer based in Levittown, Pennsylvania. Established by renowned industry veterans Robert Tull and Andrew Chanin, ProcureAM offers a unique platform for the creation of both proprietary and partnered ETPs. ProcureAM listens to clients and endeavors to provide investors with access to distinct investment opportunities. Whether you are looking to invest in ETPs or create one, contact ProcureAM to explore your performance potential: www.ProcureETFs.com.
[1] The Cost of Catastrophe: State Budgeting for Natural Disasters, by Leo Garcia, ncsl.org, December 21,2022.
[2] ProcureAM celebrates Earth Day with Expense Reduction on Natural Disaster Recovery ETF, procureetfs.com, April 20,2024.
*As of May 28th, 2024, AECOM (ACM) was a
For a complete list of holdings in the Procure Disaster Recovery Strategy ETF, visit https://procureetfs.com/fixt/. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.
Please consider the Funds investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund's summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest.
Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Securities of small- and mid-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies. The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus for a more detailed explanation of the Funds' principal risks. It is not possible to invest in an index.
Natural Disaster/Epidemic Risk - Natural or environmental disasters, such as earthquakes, fires, floods, hurricanes, tsunamis and other severe weather-related phenomena generally, and widespread disease, including pandemics and epidemics, have been and may be highly disruptive to economies and markets, adversely impacting individual 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 typically more volatile, harder to price, and less liquid than U.S. securities.
The Procure Disaster Recovery Strategy ETF is neither associated with, nor endorsed by, the Federal Emergency Management Agency.
The Procure Disaster Recovery Strategy ETF is distributed by Quasar Distributors LLC.
SOURCE: ProcureAM
View the original press release on accesswire.com
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