Heat waves are appearing earlier than usual throughout the world. Greece has already shut down schools and started closing the Acropolis during the hottest hours of the day. India is experiencing its longest heat wave spell on record, while a dangerous heat wave in the United States is spreading from the West to the Northeast. Often called the “silent killer,” excessive heat is garnering the attention of individuals and municipalities. Short-term fixes combined with longer-term projects will be needed to get relief from this ongoing climate emergency. 

Air Conditioning, Insulation, Programmable Thermostats and Caulking 

In the short term, air conditioners help alleviate the heat. From window units to whole-house systems, air conditioning is usually the first step to comfort. Once considered a luxury, air conditioning has evolved into a necessity. As communities experience increasing health problems including fatalities, they have ramped up cooling stations to allow residents some relief from excessive heat. Cities throughout the United States have designated cooling stations in libraries, recreation centers, senior centers, and churches. For quick relief, popular air conditioner retailers include stores like Home Depot*, Lowe’s*, Wesfarmers*, and Kingfisher*. 

In addition to air conditioners, home repair outlets can be a source of other heat mitigation products. Insulation in walls and roofs can keep heat out and homes cooler. Programmable or smart thermostats help regulate temperatures throughout the day to minimize energy costs. Finally, caulking windows can prevent cool air from escaping and hot air from entering a premise. 

Energy Demand

Continuous air conditioning can put a strain on energy grids, resulting in power outages. Generac* often sees a rising demand for backup power generators as temperatures surge. The demand for power during heat waves highlights the need for improvements to energy grids to prevent outages. Fortunately, companies like Eaton* work on enhancing energy grids. 

Heat Island Mitigation 

Seeking ways to reduce heat in cities is becoming a priority. When trapped heat builds up, it creates Heat Islands or Urban Heat Islands, commonly found in cities. Solutions involving increased vegetation, such as trees and gardens; light-colored roofing materials, sidewalks, and roads; and water elements such as fountains, have been helpful in lessening the impact of heat waves. Trees provide shade which can lead to lower temperatures and reduced energy consumption. AECOM* has created rooftop gardens in Shanghai, New York City, and Washington, D.C. which can mitigate heat levels. Experiments in Los Angeles and other cities have encouraged switching to new light-colored construction materials that repel rather than absorb heat. 

Data Analysis and Models 

Many companies are involved in simulation services to anticipate the effect of changing weather conditions on cities, infrastructure, and the environment. Nvidia* conducts research and modeling for extreme weather and climate predictions. AtkinsRealis* (previously known as SNC Lavalin Group) offers its City Simulator to help cities and transportation departments assess how their infrastructure will respond to hurricanes, heat waves, and droughts. It measures the impact of potential disasters versus proposed solutions to select projects with the highest return on natural disaster investment. Stantec* utilizes data analysis and remote sensing models to help cities optimize heat mitigation expenditures. 

Investing in Natural Disaster Recovery

The Procure Natural Disaster Recovery Strategy ETF (NASDAQ: FIXT) includes companies that anticipate and provide solutions to natural disasters such as heat waves, wildfires, floods, hurricanes, and earthquakes. FIXT was created to provide exposure to companies that engage in recovery efforts from natural disasters. The management fee for FIXT was dropped on Earth Day to show our commitment to disaster prevention and recovery. As weather-related disasters increase in frequency and destruction, companies will be focusing on ways to mitigate the negative impacts of natural disasters.

¹ “ProcureAM Celebrates Earth Day with Expense Reduction on Natural Disaster Recovery ETF”, April 18, 2024, https://procureetfs.com/wp-content/uploads/2024/04/FIXT-Earth-Day-2024-Press-Release.pdf. 

*As of June 14th, 2024, AECOM (ACM) was a 2.18% holding, AtkinsRealis Group (ATRL CN) was a 2.29% holding,  Eaton (ETN) was  a 2.49% holding, Generac (GNRC) was a 2.71% holding, Home Depot (HD) was a 2.12% holding, Kingfisher (KGF LN) was a 2.51% holding, Lowe’s (LOW) was a 2.13% holding, NVIDIA Corporation (NVDA) was a 3.07% holding, Stantec (SNT CN) was a 2.21% holding, Wesfarmers (WES AU) was a 2.30% holding in the Procure Disaster Recovery Strategy ETF (NASDAQ: FIXT).

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.

American Depositary Receipt Risk (ADR)-ADRs involve risks like those associated with investments in foreign securities, including changes in political or economic conditions of other countries and changes in the exchange rates of foreign currencies. ADRs listed on U.S. exchanges are issued by banks or trust companies and entitle the holder to all dividends and capital gains paid out on the underlying foreign shares. Investing in ADRs as a substitute for an investment directly in the foreign company shares, exposes the Fund to the risk that the ADRs may not provide a return that corresponds precisely with that of the foreign company’s shares.

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.