ETF Trends CEO Tom Lydon discussed the ProShares Pet Care ETF (PAWZ) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
PAWZ is the first ETF focused on the pet care industry. PAQZ allows investors to gain broad exposure to public companies in the global pet care industry – companies that stand to benefit from the proliferation of pet ownership potentially, and the emerging trends affecting how we care for our pets.
Pet care has been a durable theme in a tumultuous period. Currently, PAWZ is 2.3% year-to-date, jumping over 40% since its March lows.
PAWZ provides investors with the opportunity to gain broad exposure to public companies in the global pet care industry. It tracks the FactSet Pet Care Index, which is comprised of 24 companies that provide exposure to potential growth within the pet care industry.
FactSet identifies the company’s principal business as being pet care related. The index will tap into eight FactSet pet care subindustries, including pet food manufacturing, veterinary services, veterinary pharmaceuticals, pet supplies manufacturing, internet pet/supply retail, veterinary product distributors, pet supply stores, and veterinary diagnostics.
Pet Industry
More people are treating their pets like family, indicating that regardless of the economy, people spend money on their pets. A recent Harris Poll reports that 95% of owners consider their pets part of the family. They want their pets’ lives to be as happy, healthy and fulfilling as their own, and they will likely spare little expense to ensure it.
Adding to this, pet owners are spending billions on premium-quality foods, state-of-the-art health care, insurance policies, luxury services, and more. In the United States, the pet care industry has seen twice the percentage growth of GDP since 2007, increasing even during the Great Recession.
Related: Pet Care ETF Proves Remarkably Durable in Rough Market
At the forefront of some critical shifts in consumer behavior, some areas stand out. Shopping and consumer trends are changing as more buyers rely on the convenience of online retailers to quickly and easily meet their discretionary needs. As the retail landscape changes, investors can also capitalize on the trend through ETFs that target the e-commerce segment, which benefits companies like Chewy and others with e-commerce exposure.
Today, Seven out of ten U.S. households have pets. That’s more than those who have children, and owners are providing pets with premium foods, luxury services, state-of-the-art health care, insurance policies, and more. It’s not just a U.S. trend—similar growth is taking place internationally. The pet care industry could reach $203 billion in global sales by 2025.
Listen to the full podcast episode on PAWZ ETF:
For more podcast episodes featuring Tom Lydon, visit our podcasts category.