The Atlantic hurricane season is in full swing, and a brand new exchange-traded fund that focuses on catastrophe restoration has launched simply in time for it.
The primary-of-its-kind Procure Catastrophe Restoration Technique ETF invests in firms working to scale back threat and encourage sustainable restoration from pure disasters all over the world.
“Our partners at VettaFi and the team that helped construct this index looked at things like hurricanes, floods, droughts, wildfires, tornadoes — natural disasters that are occurring all around the globe — and what companies are actually stepping up to help us in those efforts,” ProcureAM CEO Andrew Chanin instructed CNBC’s “ETF Edge” this week.
The ETF, which trades underneath the ticker FEMA, bundles firms throughout sectors together with industrials, power and supplies. “These are the companies that really help bring our lives back to normal when we need them most,” Chanin mentioned.
Holdings in the FEMA ETF embody communications tech firm Fujitsu, threat evaluation agency Verisk Analytics, Jacobs Engineering Group and cloud computing agency VMware.
Chanin calls the ETF “a very diversified basket,” together with firms in numerous industries that work on catastrophe prevention in addition to restoration.
Individually, he instructed CNBC that creation of the FEMA ETF was impressed by Hurricane Katrina, which hit the Gulf Coast in 2005. Whereas attending faculty at Tulane College in New Orleans, Chanin thought of the monetary and human tolls that include main pure disasters.
“One of the first things I did when I was down in New Orleans, when we heard Hurricane Katrina coming, was everyone was going to Home Depot to buy plywood. And, then you need to go and you need to purchase more stuff — whether it’s shingles, whether it’s things to repair, whether it’s paint — after these disasters,” Chanin mentioned. “It’s a wide range of companies that are all involved throughout different parts of the life cycle.”
Since 1980, the U.S. has undergone 323 climate and local weather disasters totaling $2.2 trillion in prices, in accordance with the National Centers for Environmental Information, an company operated by the Nationwide Oceanic and Atmospheric Administration.
Since its launch on June 1, the FEMA ETF is off about 11%.
