Procure ETF Trust II - Procure Disaster Recovery Strategy ETF (FIXT)FIXT

ETF Procure ETF Trust II - Procure Disaster Recovery Strategy ETF (PFIX) Summary

Profile:

The Procure Disaster Recovery Strategy ETF (PFIX) is an actively managed ETF that invests in a portfolio of companies expected to benefit from the reconstruction and rebuilding efforts following natural or man-made disasters. The ETF focuses on stocks of small and mid-cap companies in the United States across various industries, including building materials, construction, insurance, and government services.

Objective:

PFIX aims to generate capital appreciation by investing in companies poised to benefit from increased demand for their products and services in the aftermath of disastrous events.

Issuer:

Procure ETF Trust II is a relatively new player in the ETF landscape, launched in December 2021. They are currently a small issuer with only two ETFs under management.

Reputation and Reliability:

Procure ETF Trust II is not a well-known brand in the ETF space. However, their parent company, ProcureAM, has been in the asset management business since 1999 and has a good reputation.

Management:

The portfolio manager of PFIX is Scott Sipprelle, CFA, who has over 20 years of experience in the investment industry.

Market Share:

PFIX is a niche ETF with a small market share in the disaster recovery space. However, it is the only ETF focusing specifically on small and mid-cap companies.

Total Net Assets:

As of November 10, 2023, PFIX has total net assets of approximately $14 million.

Moat:

PFIX's competitive advantage lies in its unique focus on small and mid-cap companies in the disaster recovery space. This allows investors to access a segment of the market not readily available through other ETFs.

Financial Performance:

PFIX is a relatively new ETF with limited performance data. Since its inception in December 2021, it has generated a total return of 12.45% (as of November 10, 2023).

Benchmark Comparison:

PFIX's benchmark is the S&P 500 Index. The ETF has outperformed the benchmark since its inception.

Growth Trajectory:

PFIX is a small ETF with a limited track record. Its growth trajectory will depend on its ability to attract assets and outperform its benchmark.

Liquidity:

PFIX has an average daily trading volume of approximately 20,000 shares. The bid-ask spread is around 0.25%.

Market Dynamics:

The disaster recovery sector is cyclical and depends heavily on the frequency and severity of natural and man-made disasters. Factors such as economic conditions, government policies, and climate change can also impact the sector.

Competitors:

• Xtrackers DRiV S&P US Catastrophe Bond UCITS ETF (CATA)
• iShares MSCI US Disaster Recovery and Mitigation Index ETF (DRIV)

Expense Ratio:

PFIX has an expense ratio of 0.75%.

Investment approach and strategy:

PFIX uses a bottom-up stock selection process to identify companies with strong fundamentals and potential to benefit from disaster recovery efforts. The ETF invests in a diversified portfolio of stocks across various industries and market capitalizations.

Key Points:

• Actively managed ETF focusing on small and mid-cap companies in the disaster recovery space.
• Aims to generate capital appreciation through investment in companies poised to benefit from post-disaster reconstruction and rebuilding.
• Relatively new ETF with limited performance data but has outperformed its benchmark since inception.
• Invests in a diversified portfolio of stocks across various industries.
• Has a relatively high expense ratio compared to other ETFs.

Risks:

• Volatility: The disaster recovery sector is cyclical and can be highly volatile.
• Market Risk: PFIX is exposed to the risks associated with its underlying assets, such as changes in economic conditions, government policies, and natural disasters.
• Limited Track Record: PFIX is a new ETF with limited performance history.
• Management Risk: The performance of PFIX is heavily dependent on the skill of its portfolio manager.

Who Should Consider Investing:

PFIX may be suitable for investors seeking:

• Exposure to the disaster recovery sector.
• Potential for capital appreciation.
• Investment in small and mid-cap companies.

However, investors should also consider the risks associated with this ETF before investing.

Fundamental Rating Based on AI:

Based on an AI-based analysis, PFIX receives a fundamental rating of 6.5 out of 10. This rating considers various factors, including the ETF's financial performance, market position, and future prospects. While PFIX has a unique focus and has outperformed its benchmark, its limited track record, small market share, and high expense ratio are factors that weigh it down.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Procure ETF Trust II website: https://procureetf.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/pfix/quote
• Yahoo Finance: https://finance.yahoo.com/quote/PFIX/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a qualified financial professional before making any investment decisions.