A new ETF for animal lovers launched in Europe – 04/05/2022, 16:17

Pet ownership has increased in recent years and accelerated during the pandemic.

Recent themes in Europe include pet care with the launch of the Rize Pet Care UCITS ETF (PETZ). This niche theme was previously only available in the US through the ProShares Pet Care ETF (PAWZ), a fund that has existed since November 2018.

This represents an exciting time for investors looking to expand beyond traditional industries and geographies. Thematic ETFs are the preferred solution for thematic investing. In a single transaction, traders can seize the investment opportunity of one or more themes emerging from trends and megatrends.

Pet grooming is a booming industry as pet ownership has increased in recent years and accelerated during the pandemic. Over the past 30 years, pet ownership has increased from 56% to 68% of all American households. Some of this shift is due to the advent of technology and online shopping. The main catalyst driving growth is culture change. As they enter adulthood, the younger generations have embraced the pet owner and lover lifestyle much more than previous generations. Today, households led by younger groups represent 62% of all pet owners (American Pet Products Association (APPA), 2020).

The industry outlook is promising as APPA forecasts that the US pet products industry, valued at $103.6 billion by 2030, is expected to grow at an annualized rate of 10.3% and reach a size of $275 billion by 2030, driven by positive demographics, increased spending per pet, and increased spending. looks. an increase in new pet owners.

In the US, ProShares’ PAWZ is trying to track the FactSet Pet Care Index and is investing in publicly traded companies that will benefit from the burgeoning pet care industry. As of April 4, 2022, funding was mainly followed by the United States (65%), followed by the United Kingdom (17%), Switzerland (4.87%), Sweden (4.25%) and France (2.97%). In terms of exposure (index) to the pet care sub-sectors, veterinary pharmaceuticals had the highest share (23.15%), followed by veterinary diagnostics (13.43%), pet and pet supply stores (12.6%), internet pet and pet supply retail (8.51%) and pet food production (6.66%) – among others.

PAWZ’s main leaders are Indexx Laboratories (IDXX, 10.13%), Zoetis Inc. (9.38%), Dechra Pharmaceuticals PLC (9.31%), Freshpet Inc. (7.36%) and Chewy Inc. (6.57%). to name a few.

PAWZ has an overall expense ratio of 0.50% and is primarily traded on the Cboe BZX exchange. The $10,000 invested in PAWZ on the start date (November 5, 2018) would convert to $17,225 on April 4, 2022.

PETZ, newly launched in Europe, aims to track the Foxberry Pet Care Index, which consists of 29 companies operating in pet food and supplies, retail pet products and services, pet health, pet insurance and veterinary services and equipment. Companies included in the index must generate at least 20% of their revenue from the target theme, have a market capitalization of at least $750 million and a daily trading volume of more than $2 million. The United States has the highest country distribution (75%), followed by Brazil (7%), the United Kingdom (6.5%) and Japan (5.6%). 48% of the portfolio’s net assets are exposed to pet health companies, 29% to pet retail, 18% to pet food and production pets, and 5% to pet insurance.

The largest companies in the fund are Pet Center Comercio E Participacoes (7.37%), Patterson COS (6.69%), Petco Health and Wellness (6.6%), Freshpet (6.32%) and Idexx Labs. (5.57%) – just to name a few.

PETZ has an overall expense ratio of 0.45% and is traded on several European exchanges including the London Stock Exchange (PETZ, USD or PAWZ, GBP), Deutsche Boerse (KATZ, EUR) and soon the SIX Swiss Stock Exchange. will be quoted. and Borsa Italiana.

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