Are You Investing in this 26% Growth Trend?
Flooding has cost US taxpayers more than $850 billion since 2000. Two-thirds of all natural disasters involve flooding and the cost of damage from these events is on pace to rise 26% alone. There is an industry that exists to provide flood recovery and prevention to communities. However, this industry does not get the attention it deserves.
This year severe floods have occurred throughout all regions of the United States. Fortunately, there are companies that offer recovery and mitigation products and services. Recovery from flooding can be summarized into five stages.
The Five Stages of Flood Recovery and Prevention
- Water Removal:
It is essential to quickly remove unwanted water. This requires pumping water out of basements, roads, farmland, etc. Companies like Sulzer* manufactures pumps, Xylem* produces pumps and offers pumping services, and Clean Harbors* offers emergency pump outs and waste disposal.
- Water System Rebuilding:
Floods can destroy water utility infrastructure and contaminate water supplies. Communities must rebuild their water utility infrastructure and oversee sanitation and decontamination services to insure safe drinking water. Steps must be taken to ensure that flooding has not exposed dangerous chemicals to area ground and water supplies. Companies like Ecolab*, Clean Harbors*, and Evoqua Water Technologies* are positioned to decontaminate water supplies, provide ground treatments, and get water systems operational.
- Debris Removal and Mold Remediation:
Floods can leave brush, vehicles, and garbage. in unwanted locations. Mold is another major danger due to flooding. Companies like NV5 Global*, Fluor*, and Clean Harbors*, are geared to offer cleanup services.
- Structure Repair and Replacement:
Repair and new construction of buildings, flooring, and walls is essential to keep structures usable. Companies like John Wood Group*, SNC Lavalin*, and Sterling Infrastructure* design and build critical infrastructure. On a local level, residents needing to repair and replace their homes often find supplies at Home Depot*, Lowe’s*, Floor and Decor Holding Inc*, and Wesfarmers*.
- Flood Prevention:
To avoid future flooding disasters, communities look to design and build improvements to their communities. Sometimes the repair and/or creation of levees and seawalls can prevent further damage during a flood. Effective regrading of roads or geographic modifications can make towns and infrastructure more resilient against flood devastation. Companies like AECOM*, Arcadis*, Stantec*, Balfour Beatty PLC*, Great Lakes Dredge and Dock Corporation*, ICF International*, Verisk*, Willdan*, and Tetra Tech* develop disaster preparation plans, design and build seawalls, engage in dredging services to manage water flow, and design resilient infrastructure and water management systems.
*America’s Flooding Problem: America’s most frequent and expensive disaster”, www.flooddefenders.org
*“New Maps Show U.S. Flood Damage Rising 26% in Next 30 Years”, www.ScientificAmerican.com, February 1,2022.
The Procure Disaster Recovery Strategy ETF (TICKER: FIXT) focuses on the companies engaged in recovering from natural disasters, such as floods. The constituents in FIXT are geared to provide the products and services that are needed to overcome the destruction from natural disasters and design and build the infrastructure needed to withstand or minimize future devastation.
*As of May 11th, 2023, AECOM (ACM) was a 1.77% holding, Arcadis (ARCAD NA) was a 1.96% holding, Balfour Beatty (BBY LN) was a 2.34% holding, Clean Harbors (CLH) was a 1.97% holding, Ecolab (ECL) was a 2.16% holding, Evoqua Water Technologies (AQUA) was a 2.07% holding, Floor and Decor Holding Inc (FND) was a 2.12% holding, Fluor (FLR) was a 1.52% holding, Great Lakes Dredge and Dock Corporation (GLDD) was a 2.08% holding, Home Depot (HD) was a 1.96% holding, ICF International (ICFI) was a 2.09% holding, John Wood Group (WG/ LN) was a 2.02% holding, Lowe’s (LOW) was a 20.03% holding, NV5 (NVEE) was a 1.77% holding, SNC Lavalin (SNC CN) was a 2.16% holding, Stantec (SNT CN) was a 2.03% holding, Sterling Infrastructure (STRL) was a 2.05% holding, Sulzer (SUN SW) was a 1.84% holding,, Tetra Tech (TTEK) was a 2.04% holding, Verisk (VRSK) was a 2.29% holding, Wesfarmers (WES AU) was a 1.98%, Willdan Group (WLDN) was a 1.98% holding, 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.
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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.