This year began with horrific earthquakes in Turkey and Syria, monumental atmospheric rivers in California, and a railroad derailment in Ohio resulting in a major hazardous chemical spill. The damage from these disasters needs to be addressed and steps have to be taken to prevent future destruction. The affected areas will require help, but who do they call?
Fortunately, there is an industry comprised of companies providing disaster recovery and prevention products and services. With natural disasters occurring more frequently and becoming more destructive, the market for disaster recovery and prevention is poised to grow. After a major disaster, a timely response is essential. Firms with experience are best equipped to assess the damage and implement short- and long-term recovery plans.
Earthquakes in Turkey and Syria
The devastating earthquakes in Turkey and Syria affected nearly 15 million people and destroyed twelve thousand buildings. Going forward, housing, schools and hospitals will need to be rebuilt and water supplies restored.1 A recent World Bank estimate put the cost of direct physical damage at almost $34.2 billion and total reconstruction and recovery at nearly twice that amount!2
The quakes highlighted the inconsistency in building code adherence throughout the region. Amazingly, some buildings withstood the impact while others were destroyed. In the future, stricter adherence to building codes will be enforced and new construction processes will be investigated with changes like less reliance on concrete as a building material adopted. Companies like Fugro,* a Dutch firm that analyzes earth stability for building may be in demand. Not that long ago they were hired to analyze the ground prior to construction of a nuclear reactor in Turkey.3
California Atmospheric Rivers and Flooding
Nonstop atmospheric rivers have been pounding California with unprecedented snowstorms and rainfalls. Floods, lack of power, and mudslides are just some of the fallout from these weather disasters. Levees that had been in danger for years have been breached. While it may be too late to prevent the current damage, federal and state agencies have announced funding for repairs. The USDA Natural Resources Conservation Service in California recently announced $1.5 million to repair levees in Northern California.4 Belatedly, a $400 million levee rebuild is scheduled for 2025.5
Mudslides, blocked and damaged roadways, weakened bridges, and other damaged infrastructure will need to be repaired. In the short-term, the lack of power may be handled with generators from companies like Generac,* Cummins,* and Xylem.* Meanwhile longer-term solutions may require the new microgrids by companies like Eaton,* Enersys* and Willdan.* Microgrids may help to transmit energy during periods of power disruptions. A recent industry study forecasted the global microgrid market to increase by 18.6% between 2022 and 2027.6
Flooding has been a major consequence of the historic storms pounding California. The state will have to contend with contaminated water supplies and flooded residential and commercial properties. An unintended consequence of flooding has been the damage to farmland. Farmland may become unusable according to Federal regulations because the soil may have become contaminated from debris and other contaminants. Water management, sanitation, and flood control are markets for companies like Xylem,* Wood Group,* Sulzer,* Stantec,* Clean Harbors,* and TetraTech.*
Norfolk Southern Derailment
In the case of the Norfolk Southern rail crash, instant action was taken to analyze the water and air samples in the area. AECOM* was brought in immediately to analyze water samples. TetraTech* and Arcadis* have been deployed to clean the water and streams that were contaminated by the chemical spill and to excavate and replace soil adjacent to the affected train tracks. Much of this work will be funded by the railway. Meanwhile, AECOM* as well as the Ohio Environmental Protection Agency, will be monitoring and testing in the area for the foreseeable future.7
The Disaster Recovery and Prevention Industry is an essential and growing industry. Whether it’s from natural disasters like earthquakes, floods, hurricanes, blizzards, droughts and wildfires, or manmade hazards, the resulting destruction will need to be repaired. The companies providing the products and services to facilitate a return to normal will continue to be busy.
*As of March 20th, 2023, AECOM (ACM) was a 1.91% holding, Arcadis (ARCAD NA) was a 1.90% holding, Clean Harbors CLHJ) was a 1.99% holding, Cummins (CMI) was 1.81% holding, Eaton Corp (ETN) was a 1.86% holding, Enersys (ENS) was a 1.85% holding, Fugro (FUR NA) was a 1.90% holding, Generac (GNRC) was a 1.95% holding, John Wood Group (WG/ LN) was a 1.89% holding, Stantec (SNT CN) was a 2.00% holding, Sulzer (SUN SW) was a 1.82% holding, Tetra Tech (TTEK) was a 2.06% holding, Willdan Group (WLDN) was a 1.93% holding, and Xylem (XYL) was a 1.92% holding in the Procure Disaster Recovery Strategy ETF (NASDAQ: FIXT).
1 What Turkey Needs for Its Long Recovery, Insights.som.yale.edu, February 17, 2023.
2 Turkey’s crisis management playbook: Donations, reconstruction, and inflation with an eye on elections, Mei.edu, M. Murat Kubilay, March 3, 2023.
3 Fugro’s Site Characterization Supports Safe Design of Turkey’s Second Nuclear Power Plant, Fugro.com, August 12, 2021.
4 NRCS California Awards Federal Funding for Emergency Levee Repairs, nrcs.usda.gov, February 24, 2023.
5 Levee break brings more flood problems to California as new storm approaches, PBS.com, March 13, 2023.
6 Microgrid Market by Connectivity… Global Forecast to 2027, Marketsandmarkets.com, July2022.
7 NTSB Issues Initial Ohio Derailment Report as EPA Takes Over Cleanup, enr.com, February 2023.
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.
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.
Something is happening in the sky, but no one is sure what it is. Initial reports indicated that China was sending weather balloons to gather meteorological data. Next, the United States declared the balloons to be spy apparatuses intended to collect military information. Then came speculation whether the additional objects identified in the sky could be extraterrestrial devices!
Sophisticated military radar systems are essential to tracking these mysterious objects. Normally, radar is used to pick up fast moving, heat generating items that are usually associated with missiles or enemy aircraft. The most recent objects discovered are slower moving, cooler entities. As radar parameters are modified for increased sensitivity, more items are likely to be discovered.
The original objects were treated as possible enemy devices and were tracked and destroyed by fighter planes. A search and retrieval effort will hopefully reveal more about these objects. However, this can be costly as more objects are discovered. Radar and satellite data will be crucial to track and identify these unknown objects.
Along with radar, satellites will play a critical role in the observation of and communication regarding UFOs or, using governmental jargon, “unexplained anomalous phenomena” (UAPs). Satellites will be instrumental in further identifying and tracking the location of objects such as other satellites, debris, remote sensing equipment and other items.
The Procure Space ETF (UFO:NASDAQ) is an exchange-traded fund comprised of constituents involved in space-related industries. UFO incorporates radar and satellite companies within the fund:
Radar Manufacturers
According to Fortune Business Insights, the top five military radar manufacturers are Airbus S.A.S.*, Raytheon Technologies*, Northrop Grumman*, Saab AB*, and Thales Group*. In the United States, Lockheed Martin* is another major radar provider while General Dynamics* incorporates Leonardo* equipment for radar systems.
Satellite Companies
Satellite manufacturers, launch firms, and communications providers are important components of the Procure Space ETF. Astra Space*, AST SpaceMobile*, BlackSky*, Boeing*, Eutelsat*, Maxar Technology*, Planet Labs*, Trimble*, Viasat* are companies that are constituents in the fund.
No one can predict the future, but it is extremely likely that governments all over the world will be spending more time gazing at the sky and looking for more than twinkling stars.
As of February 13th, 2023, Airbus (AIR FP) was a 1.15% holding, Aeroejet Rocketdyne (AJRD) was a 0.26% holding, Astra (ASTR) was a 0.51% holding, AST SpaceMobile* (ASTS) was a 1.16% holding, BlackSky Technology (BKSY) was a 0.57% holding, Boeing (BA) was a 2.79% holding, Eutelsat (ETL FP) was a 4.50% holding, Leonardo (LDO IM) was a 0.08% holding, Lockheed Martin (LMT) was a 2.33% holding, Maxar (MAXR) was a 9.89% holding, Northrop Grumman (NOC) was a 2.02% holding, Planet Labs (PL) was a 4.02% holding, Raytheon Technologies (RTX) was a 2.37% holding, Rocket Lab (RKLB) was a 5.36% holding, Trimble (TRMB) was a 4.53% holding, Thales (HO FP) was a 0.24% holding, Viasat (VSAT) was a 4.82% holding in the Procure Space ETF (NASDAQ: UFO). The Procure Space ETF (NASDAQ: UFO) does not hold the following companies: General Dynamics (GD) and Saab AB (SAABF).
For a complete list of holdings in UFO, visit: https://procureetfs.com/ufo/. 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.
Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. 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.
UFO is distributed by Quasar Distributors LLC.
The United States, China and Russia are not the only nations with space agencies. As of the end of 2022, 102 countries belonged to the United Nations Committee on the Peaceful Uses of Outer Space (COPUS), up from 18 in 1959.1
The original goal of COPUS was to strive for international cooperation and peace on behalf of space participants. Some of the responsibilities include:
Since 1962, the United Nations has maintained a Register of Objects Launched into Outer Space including “satellites, probes, landers, crewed spacecraft, and space station elements launched into Earth orbit or beyond.”2 The purpose of this list is to assist COPUS during discussions regarding political, technical and legal issues.
the United States led the way in launches in 2022 with 5,534 followed by Russia and China, according to Our World in Data.3 The top twenty countries based on the cumulative Number of Objects Launched into Space are as follows:
Countries around the world have realized that space is the future. And the Procure Space ETF (UFO) acknowledges this interest by including domestic and international companies in the fund.
1 www.unoosa.org
2 www.unoosa.org/oosa/en/spaceobjectregister/index.html
3 www.VisualCapitalist.com, by Avery Koop, July 8, 2022
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.
Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. 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.
UFO is distributed by Quasar Distributors, LLC.
Natural disasters are an unfortunate reality that can strike anywhere at any time. By the end of this century, the U.S. Government predicts that damages from hurricanes, wildfires, floods, droughts, severe storms, and earthquakes could cost the U.S. Federal budget about $2 trillion each year.1 However, corporations involved with the recovery and prevention of natural disasters could see revenue increases while helping to minimize the destruction from natural disasters.
The Procure Disaster Recovery Strategy ETF (NASDAQ: FIXT) is the first exchange-traded fund to invest in a portfolio of worldwide companies that are engaged in recovery and risk reduction efforts as a result of natural disasters.
The corporations found within the FIXT ETF span numerous industries. These industries offer natural disaster recovery and prevention products and services, from home improvement companies selling flashlights and shovels to consulting and engineering firms that plan, design and build bridges, energy grids, and worldwide water systems. The constituents in the FIXT ETF encompass a range of needs created by natural disasters
By 2030, the UN predicts 560 disaster events a year (1.5 each day!)2. Already the world has experienced flooding in Yellowstone National Park, Kentucky, Nigeria, and China. Wildfires have created havoc in California, Spain, France, and Hawaii. Summer droughts and heatwaves this year have burdened the United States, Europe, and China. Mexico has experienced earthquakes. Most recently, hurricanes have brought destruction to Puerto Rico, Cuba, Canada, and Florida.
Without the ability and resources of companies to help communities recover and build back safer and stronger, damage will be even more devastating. The FIXT ETF highlights the firms who step up when natural disasters occur. For more information on the Procure Disaster Recovery Strategy ETF, visit www.ProcureETFs.com.
_______________________________________________
1 https://www.cnbc.com April 4, 2022.
2 https://news.un.org April 26, 2022.
*As of October 4th, 2023, AECOM (ACM) was a 2.01% holding, Fluor (FLR) was a 2.11% holding, Generac (GNRC) was a 1.89% holding, Home Depot (HD) was a 1.91% holding, Hornbach Holdings (HBH GR) was a 1.83% holding, John Wood Group (WG/ LN) was a 1.88% holding, Kingfisher (KGF LN) was a 1.98% holding, Lowe’s (LOW) was a 1.85% holding, NEC Corporation (6701 JP) was a 2.16% holding, Tetra Tech (TTEK) was a 2.08% holding, VMWare (VMW) was a 2.16% holding, Wesfarmers Ltd (WES AU) was a 2.10% holding, and Xylem (XYL) was a 2.03% 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.
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.
As we recognize the United Nations’ International Day for Disaster Reduction, Puerto Rico and Florida are just beginning the long road to recovery from Hurricanes Fiona and Ian. The death toll from these storms is already over 100 and unfortunately, is likely to rise, while the financial impact is estimated to be in the billions.1 These catastrophic storms serve as a stark reminder that the frequency and intensity of natural disasters are increasing and reinforce the importance of this year’s UN theme of early warning and disaster risk reduction. This devastating hurricane season also takes me back to my own experiences with Hurricanes Katrina and Sandy — the connection behind the Procure Disaster Recovery Strategy ETF (FEMA).
It was the last week of August in 2005, I had just arrived in New Orleans to start my junior year at Tulane University when Hurricane Katrina evacuations began. My friends and I headed to Baton Rouge to escape the brunt of the storm — the one-hour drive took five as many tried to flee. I remember watching the news, realizing this would be a catastrophic, life-changing event.
After the storm passed, the fall semester was canceled and I made my way home to New Jersey, struggling to find gas along the way and sleeping in a car because hotels were full.
The following year, Tulane reopened, despite sustaining $100 million in damages. I returned that fall to campus overwhelmed with emotions — it was incredible to reunite with friends, but you were constantly reminded by the impact of that violent hurricane. This city I loved was a fractured version of its former self with homes destroyed and communities dispersed. Despite the destruction, it is beautiful to see the significant progress New Orleans has made to restore its traditions and culture while making investments to better protect the city and its inhabitants in the future.
Seven years later while living in New York City, I saw similar destruction after Hurricane Sandy ripped through the Northeast. Having grown up in neighboring New Jersey, it was difficult to see the state where my friends and family live struggling to rebuild in the aftermath of the storm. Living through these two storms really put the disaster recovery industry into perspective for me personally. While these storms each felt like once-in-a-lifetime events, the reality is natural disasters are increasing in frequency and severity. The White House believes that damages from hurricanes, wildfires, floods, droughts, severe storms and earthquakes could cost the US Federal budget $2 trillion per year by the end of the century.2
It was these experiences with Katrina and Sandy which resonated with me during the creation of the FEMA ETF, which we launched in June of this year. The Procure Disaster Recovery Strategy ETF is the first fund to invest in global companies engaged in mitigating the risk and recovering from natural disasters. The FEMA ETF is the culmination of my experiences with natural disasters and my background in the thematic ETF space. Public sector investment in natural disaster recovery is not enough — the private sector plays a critical role in minimizing the impact of these events.
This year, as we observe the International Day for Disaster Reduction, the focus is on increasing the availability of multi-hazard early warning systems, as well as disaster risk information and assessment, by 2030. Early warning is quite literally the difference between life and death. The ability to not only predict the strength of these events, but also pinpoint the areas that will be most impacted, allows for preparations to preserve life and property. Several of the companies within the FEMA ETF play a critical role in risk reduction, including Maxar Technologies* (MAXR), which uses satellite imagery to track hurricanes, wildfires and other impending disasters in order to prepare areas of impact. Other companies, including Jacobs Solutions* (J) and AECOM* (ACM), are global leaders in helping communities enhance disaster resiliency and adapt to climate change.
By 2030, the United Nations estimates there will be 500 major natural disaster events a year, each one costing more than $1 billion — that’s 1.5 events per day.3 The startling numbers remind us why disaster prevention and mitigation is vital, and it’s why ProcureAM believes it’s necessary that companies working in this space are funded and championed.
1 https://www.cnbc.com October 3, 2022.
2 https://www.cnbc.com April 4, 2022.
3 https://news.un.org April 26, 2022.
*As of September 30th, 2022, AECOM (ACM) was a 1.64% holding, Jacobs Solutions (J) was a 1.58% holding, and Maxar (MAXR) was a 1.47% holding in the Procure Disaster Recovery Strategy ETF (NASDAQ: FEMA).
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 product is neither associated with, nor endorsed by,
the Federal Emergency Management Agency.
Procure Disaster Recovery Strategy ETF (FEMA) is distributed by Quasar Distributors LLC.
Protecting Our Planet Starts in Space
The 2021 United Nations Climate Change Conference, COP26, brought politicians, business leaders and celebrities from around the world together to share insights and visions on combatting climate change. While many of the participants emphasized the need to protect planet Earth, the importance of space was undeniable this year.
In order to tackle the numerous challenges our planet faces from global warming, we must have the tools to monitor and measure change. Satellites are playing a critical role in the data collection process. Companies such as Maxar* and Airbus* are using satellites to track weather patterns and natural disasters, detect and quantify emissions, calculate sea and ice levels, observe droughts, and much more.
However, the space industry’s role in ensuring Earth’s safety does not simply end with observation. As global superpowers like China and Russia demonstrate satellite destroying capabilities and
corporations look to ramp up space businesses via satellite launches, the need to protect Low Earth Orbit (LEO) is imperative. New investments in space debris monitoring, removal and mitigation will be essential to keep LEO safe and usable for decades to come.
Looking beyond LEO, researchers aim to protect Earth from asteroids and meteors. As a result, investments are increasing in the areas of detection and deterrence of these potentially destructive menaces. Just last month, NASA launched its Double Asteroid Redirection Test mission to gauge our ability to redirect the course of an asteroid that could one day threaten life on Earth.
The world’s first global pure‐play space ETF, the Procure Space ETF (TICKER: UFO), currently includes space-based companies poised to participate in, and potentially capitalize on, protecting Earth. From the events of COP26, it has never been more apparent that we must empower the space industry if we wish to protect the beautiful planet that we call home. To learn more about UFO, the Procure Space ETF, visit www.ProcureETFs.com.
*As of December 29th, 2022, Airbus (AIR FP) was a 1.20% holding and Maxar Technologies (MAXR) was a 10.57% holding in the Procure Space ETF (NASDAQ: UFO). For a complete list of holdings in UFO, visit https://procureetfs.com/ufo/. 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.
Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry
sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and
operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less
liquid than U.S. securities. 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.
UFO is distributed by Quasar Distributors, LLC.
The race among countries to deploy the fifth-generation of wireless technology (5G) is on. With its promises to provide instantaneous mobile downloads, accelerate massive growth of the Internet of Things, aid in robotic surgeries, and enable smarter autonomous vehicles, it’s easy to understand why countries are competing to be the leader in 5G. In addition to the technological breakthroughs, 5G is anticipated to offer socio-economic benefits including the creation of an estimated 3 million jobs in the US alone says Accenture’s Smart Cities report. The GSM Association’s The Mobile Economy 2019 report also predicts 5G to contribute $2.2 trillion to the global economy over the next 15 years.
In order to achieve its full capabilities, 5G will require the space industry, satellites in particular, to play an integral role. Unlike previous generations of mobile networks initially designed to operate autonomously, 5G has been developed from the start to integrate with space-based platforms made up of geostationary satellites, non-geostationary satellites and High-Altitude Platforms.
Satellites offer several advantages over terrestrial networks including wide coverage, mobility, costeffectiveness and greater resiliency from earth based physical attacks and natural disasters. Space technology will help make 5G available to remote and underserved communities, as well as moving platforms including trains, planes, and ships. The multicast/broadcasting functionality provided by satellites will also contribute to 5G use cases such as the connected car (passenger infotainment and car software updates).
The world’s first global pure‐play space ETF, the Procure Space ETF (TICKER: UFO), currently includes space-based companies poised to participate in, and potentially capitalize on, the 5G race. Global satellite operators and UFO constituents, Maxar Technologies, Intelsat and Telesat (owned by Loral Space & Communications) have committed to developing technology and working with industry influencers to establish protocols to integrate satellites into 5G networks. For a complete list of holdings in UFO, visit https://www.procureetfs.com/ufo#holdings. 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.
As countries continue their quest for 5G dominance, space-based networks will be implemented progressively more within the 5G ecosystem. Satellite providers will be relied upon to deploy 5G coverage where terrestrial infrastructure is unavailable. When looking to position your portfolio to gain exposure to companies that may benefit from the potential 5G revolution, you may want to consider the impact satellite operators and manufacturers will have within the space. To learn more about UFO, the Procure Space ETF, visit: https://procureetfs.com/ufo
Disclosures:
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.
Any investment product, strategy, or product design that is described on the Procure ETF’s website may not be suitable for all types of clients.
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. Aerospace and defense companies can be significantly affected by government
aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new
entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies
that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. 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.
Any investment decision should be based on the individual circumstances of the beneficial owner.
Registration with the Securities Exchange Commission (“SEC”) does not imply a certain level of skill, training or endorsement by the SEC, Finra or other government regulatory authority.
UFO is distributed by Quasar Distributors LLC.
Bitcoin—the first decentralized cryptocurrency—was created in 2009, and what has since transpired has
taken the planet by storm…so much so that cryptocurrencies and the blockchain technologies that
support them and countless other use cases are no longer confined to this planet alone.
One of the original cases for Bitcoin was its decentralized nature. An alternative to centralized,
government issued currencies, Bitcoin (and other cryptocurrencies) have extolled the benefits of not
being controlled by the whims of political interests. However, as the cryptocurrency gained traction,
detractors pointed to another potential risk of Bitcoin…its reliance on the internet. How could
cryptocurrencies ever truly be decentralized if large internet companies have the ability to shutdown
access?
Enter the cypherpunks and blockchain visionaries
Acknowledging the potential vulnerability to internet outages, many of the brightest minds from the
fintech world and beyond began looking to the skies for solutions. The cloud was already being utilized
by many for blockchain services, so luminaries began to look beyond the cloud(s) and into outer space.
UFO, the world’s first global pure‐play space ETF is already currently positioned to potentially benefit
from companies utilizing space systems to create blockchain solutions. Two UFO portfolio companies,
satellite operators Intelsat and Eutelsat, provide service to a third party that offers access to the Bitcoin
blockchain around the planet, even to users with no internet. Additional solutions may come from
blockchain startups launching fleets of dedicated microsatellites that may prove to be cost effective.
In short, blockchain is currently disrupting countless antiquated industries such as finance,
manufacturing, real estate and entertainment to name a few. Many companies are starting to hire
satellite manufacturers and operators to help keep blockchain services robust, cost efficient and
continuous. When thinking about how to position your portfolio to gain exposure to companies that
may benefit from the numerous data‐intensive transformational technologies which may change our
future (blockchain, cloud computing, 5G, Internet of Things, etc…), it may make sense to consider the
vital role space companies play. To learn more about UFO, the Procure Space ETF, visit:
https://procureetfs.com/ufo
Disclosures:
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.
For a complete list of holdings in UFO, visit https://www.procureetfs.com/ufo#holdings. 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.
Any investment product, strategy, or product design that is described on the Procure ETF’s
website may not be suitable for all types of clients.
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. Aerospace and defense companies can be significantly affected by government
aerospace and defense regulation and spending policies. The exploration of space by private
industry and the harvesting of space assets is a business based in future and is witnessing new
entrants into the market. Investments in the Fund will be riskier than traditional investments in
established industry sectors. The Fund is considered to be concentrated in securities of
companies that operate or utilize satellites which are subject to manufacturing delays, launch
delays or failures, and operational and environmental risks that could limit their ability to utilize
the satellites needed to deliver services to customers. Investing in foreign securities are volatile,
harder to price, and less liquid than U.S. securities. 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.
Cryptocurrencies and blockchain systems could be vulnerable to fraud and cybersecurity risk.
Investing in cryptocurrencies is highly speculative and an investor can lose the entire amount of
their investment. The values of companies included in portfolios may not be reflective of their
connection to blockchain technology but may be based on other business operations.
Any investment decision should be based on the individual circumstances of the beneficial owner.
Registration with the Securities Exchange Commission (“SEC”) does not imply a certain level of skill,
training or endorsement by the SEC, Finra or other government regulatory authority.
UFO is distributed by Quasar Distributors LLC.