The ProShares Pet Care ETF (PAWZ) is the first ETF of its kind to cater to a pet care industry that boasted sales of $132 billion in 2016.
“It’s the first pet care ETF,” Steve Cohen, Managing Director of ProShares, told ETF Trends. “We’re excited about it because we think that while pets are great companions, they are also big business.”
The pet care industry is poised for even further growth as data collated from Grand View Research and other pet industry trends show that sales could reach upwards of $203 billion by the year 2025–a growth of 54% in less than 10 years. That type of exponential growth can only garner more interest, which has been evident in more than 80 mergers and acquisitions over the past 12 months within the pet care industry.
That trend can only intensify as the number of pet owners increasing will feed into the sales growth. According to data from the American Pet Products Association (APPA), roughly 68% of U.S. households currently have pets, which represents an increase of 56% since 1988.
In the video below, Cohen joined CNBC’s ‘The Exchange’ to discuss the growing business of the pet food industry and what’s causing the growth.
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Conversely, if investors believe that U.S. defensive sectors will outperform cyclical sectors, the Direxion MSCI Defensives Over Cyclicals ETF (NYSEArca: RWDC) provides a means to not only see defensive sectors perform well, but a way to capitalize on their outperformance compared to cyclical sectors.
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