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 corporations working to scale back danger and inspire sustainable restoration from pure disasters all over the world.
“Our companions at VettaFi and the crew that helped assemble this index checked out issues like hurricanes, floods, droughts, wildfires, tornadoes — pure disasters which are occurring throughout the globe — and what corporations are literally stepping as much as assist us in these efforts ,” ProcureAM CEO Andrew Chanin informed CNBC’s “ETF Edge” this week.
The ETF, which trades underneath the ticker FEMA, bundles corporations throughout sectors together with industrials, vitality and supplies. “These are the businesses that actually assist carry our lives again to regular after we want them most,” Chanin mentioned.
Holdings within the FEMA ETF embody communications tech firm Fujitsu, danger evaluation agency Verisk Analytics, Jacobs Engineering Group and cloud computing agency VMware.
Chanin calls the ETF “a really diversified basket,” together with corporations in numerous industries that work on catastrophe prevention in addition to restoration.
Individually, he informed CNBC that creation of the FEMA ETF was impressed by Hurricane Katrina, which hit the Gulf Coast in 2005. Whereas attending college at Tulane College in New Orleans, Chanin thought-about the monetary and human tolls that include main pure disasters.
“One of many first issues I did once I was down in New Orleans, after we heard Hurricane Katrina coming, what everybody was going to Residence Depot to purchase plywood. And, then it’s essential to go and it’s essential to buy extra stuff — whether or not it is shingles, whether or not it is issues to restore, whether or not it is paint — after these disasters,” Chanin mentioned. “It is a variety of corporations which are all concerned all through completely different elements of the life cycle.”
Since 1980, the US has undergone 323 climate and local weather disasters totaling $2.2 trillion in prices, in accordance with the Nationwide Facilities for Environmental Data, an company operated by the Nationwide Oceanic and Atmospheric Administration.
Since its launch on June 1, the FEMA ETF is off about 11%.