Pet care is evolving. Ownership of pets has risen to nearly 70% of households in the US according to The American Pet Products Association. Not only are pets more prevalent, but the humanization of our furry friends has led to a boost in consumer spending.
“The care and the well being of an animal has never mattered more to society, than it does today,” says Jeff Simmons, CEO of Elanco Animal Health. Since 2005, Elanco has tripled its revenue and has become a global leader in animal health and pet care.
Compared to traditional human pharma, the animal healthcare industry offers a faster product approval period, deeper customer relationships, and a cash vs. payer-based market. According to Simmons, factors like the rising middle class, innovative technologies, and global trade channels will continue to expand opportunities for Elanco and the pet care industry as a whole.
PAWZ ETF: Capitalizing on the Humanization of Pets
Launched in 2018, The ProShares Pet Care ETF (PAWZ) is the first ETF dedicated to the pet care industry. PAWZ invests in the following key sub industries: pet food manufacturing, vet services, internet pet and supply retail, vet pharmaceuticals, pet supply stores, vet diagnostics, pet supplies manufacturing, and vet product distributors.
The Rise of Thematic Investing
Representing nearly $50 billion in assets, thematic ETFs are a big part of the market, explains Bloomberg Intelligence’s Senior ETF Analyst Eric Balchunas. Thematic ETFs allow investors access to certain parts of the market that may be ignored by major indexes or strategies.
To learn more on what makes a durable, investable theme and other investment opportunities from ProShares, head here.