Famous advice says “invest in what you know”—70% of American households have pets and we spend billions on them annually; more than $8 trillion has been spent over the past decade to improve U.S. roads; and it’s projected that shoppers will spend about $3.5 trillion globally on online retail purchases this year and $4.8 trillion by 2021. Major trends like these are all around us, and they could be significant investment opportunities.
On the upcoming webcast, Pet Care, Infrastructure & Online Retail—Investing in Today’s Global Trends, Simeon Hyman, Global Investment Strategist at ProShares, and Kieran Kirwan, Director of Investment Strategy at ProShares, will discuss how you can put them to work in your portfolio.
Specifically, ETF investors can look to targeted ETF strategies such as the ProShares Pet Care ETF (PAWZ). PAWZ is the first ETF of its kind to cater to the pet care industry. The ETF idea tries to capitalize on the pet care industry that 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.
As infrastructure investments have been receiving renewed attention, the theme is benefiting some ETFs, like the ProShares DJ Brookfield Global Infrastructure ETF (NYSEArca: TOLZ). TOLZ focuses on companies whose assets include airports, toll roads, ports, communications, electricity distribution, oil and gas storage and transport, and water in both developed and emerging markets. To be included in the index, companies must derive more than 70% of their cash flows from infrastructure assets. The index excludes companies that supply services such as construction and engineering to the infrastructure industry.
With the increased popularity of e-commerce and the decline of traditional brick-and-mortar shops, investors can also capture this growing trend through an ETF. The ProShares Decline of the Retail Store ETF (NYSEArca: EMTY) and ProShares Long Online/Short Stores ETF (NYSEArca: CLIX) both take a short position in brick-and-mortar retail stores to capitalize on weakness in traditional stores. Meanwhile, the ProShares Online Retail ETF (NYSEArca: ONLN) takes on a long position in online retailers.
Financial advisors who are interested in learning more about sector investment ideas can register for the Thursday, May 16 webcast here.