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.