ETF Market Crisis: Farewell to an Innovative Financial Product

A specialized ETF that invests in companies involved in the recovery and prevention of natural disasters is nearing its end. The fund, managed by ProcureAM, will be traded on the Nasdaq for the last time on October 17, according to a recent announcement. This comes just a few days after Hurricane Helene left severe devastation in Florida. ProcureAM's CEO, Andrew Chanin, stated that the FIXT Fund is being dissolved due to insufficient demand, despite growing approval for its concept. Developed in collaboration with VettaFi, the fund invested in construction firms, electricity companies, and engineering and mechanical companies. Among them are prominent names such as the British construction company Balfour Beatty and US companies like Great Lakes Dredge & Dock and Sterling Infrastructure. The challenges for thematic funds like FIXT are significant. According to Lan Anh Tran of Morningstar, smaller providers in the highly competitive ETF market often disappear due to their limited resources. Chanin also confirms that it was difficult to gain the necessary attention from investors and distribution partners for the fund. Despite the devastating destructions caused by Hurricane Helene and an economic loss of 34 billion dollars, interest in the Disaster Recovery Strategy ETF was low. However, ProcureAM's engagement in the ETF niche remains. The company's other fund, the 34 million dollar UFO Procure Space ETF, continues to attract attention. It invests in companies that operate satellites for weather observation, thus offering parallel solutions for risks from natural disasters. Chanin sees ongoing opportunities for investments in this segment and remains optimistic about future solutions.