Andrew Chanin: Natural Disaster Stocks — How to Invest Before, During and After

TL;DR

The FIXT ETF tracks companies involved in natural disaster preparedness and recovery, providing investors with exposure to this growing industry.

Transcript

I'm Charlotte McLoud with investing news.com and here today with me is Andrew Channon CEO of procure ETFs which is the issuer of the fixed ETF thank you so much for joining me great to have you here thanks for having me great to be back really good to be speaking with you and we're going to go in a little bit of a different direction today than we ... Read More

Key Insights

• 💄 Natural disasters are increasing in frequency and cost, making companies involved in natural disaster preparedness and recovery crucial.
• 🥹 The FIXT ETF's holdings encompass a range of industries, including construction, consulting, engineering, technology, and water purification.
• 🐕‍🦺 Many of the companies in the ETF have contracts with government agencies like FEMA and provide essential services during and after natural disasters.
• 🖐️ The ETF's performance may be influenced by major natural disasters, but the companies within the fund play a critical role in aiding communities and rebuilding.
• 😮 There is a potential for increased interest in the ETF due to the rising costs and risks associated with natural disasters.
• 💐 The companies in the ETF are not exploitative but should be championed for their efforts in helping communities during times of crises.
• 📽️ Their involvement in natural disaster-related projects may also provide financial stability for these companies during economic recessions.

Questions & Answers

Q: How did the idea for the FIXT ETF come about?

The CEO, Andrew Channon, experienced Hurricane Katrina and Hurricane Sandy, which inspired him to create a vehicle that invests in companies that help aid and protect during natural disasters.

Q: What are some key statistics on the increasing costs of natural disasters?

The White House predicts that the cost to the US federal budget from natural disasters and climate change could reach $2 trillion per year by the end of the century. These costs extend to other countries, individuals, and businesses as well.

Q: Can you provide examples of companies involved in each stage of the natural disaster life cycle?

Companies in the ETF's holdings focus on preparedness (construction, consulting, engineering), during the disaster (firefighting helicopters, personnel training), and after the disaster (coastline rebuilding, home renovation).

Q: How does the FIXT ETF perform in conjunction with natural disasters?

The ETF's performance may vary depending on the types of natural disasters. However, events like the Canadian wildfires have sparked increased interest and demand for the fund.

Summary & Key Takeaways

• The FIXT ETF was created to invest in companies that aid in natural disaster preparedness and recovery.

• The cost of natural disasters is increasing, with predictions that it could reach around $2 trillion per year by the end of the century.

• The ETF's holdings span across various industries, including construction, engineering, technology, and water purification.