INVESTMENT CASE

PAWZ

Pet Care ETF

Is Your Best Friend Also Your Best Investment?

 

Key Takeaways:

  • Pet care spending is big business, reaching more than $120 billion in the United States.
  • Long-term trends show significant increases in pet ownership and a shift toward premium products and services.
  • A boom in pet care and pet health has led to increased innovation and spending in these industries.
  • PAWZ is the first ETF focused on the pet care industry, giving investors the opportunity to benefit from the proliferation of pet ownership and the emerging trends affecting how we care for our pets.

Pet Care Spending Is Big Business

Pet care spending has grown to over $100 billion annually in the United States.1 Today's pet owners are not just buying food and toys but also splurging on a bevy of premium products and services: designer clothes, high-tech monitoring devices, platinum health insurance plans, and more.
 
Long-term trends and survey data suggest that pet care spending may continue to grow, even during periods of economic uncertainty. Indeed, pet care spending has continuously increased for decades.
 
pawz_ic_expenditure.png
 

Behind Pet Care Spending Growth Trends

The U.S. pet care industry has seen steady growth each year since 2001, even during the Great Recession. And a similar boom has been building internationally: The global pet care industry is expected to grow to as much as $350 billion by 2027, a more than 50% increase from $232 billion in 2020.2
 
What’s behind the continued surge in spending, and what gives us reason to believe it can be sustained? Consider these factors.
 
pawz_ic_trends.png
 
pawz_ic_humanizing.png
 

Pet Health Is Growing

Health care is generally one of the biggest expenses for pet owners, and spending in this category has the potential to continue growing. One big reason: today’s pet owners are now providing their pets with access to health care comparable to their own.
 
pawz_ic_sophisticated.png
 

The First ETF to Capture the Pet Care Opportunity

ProShares Pet Care ETF (PAWZ) gives investors the opportunity to gain broad exposure to public companies in the global pet care industry—companies that stand to potentially benefit from the proliferation of pet ownership and the emerging trends affecting how we care for our pets.
 
 
1American Pet Products Association (APPA), “Pet Industry Market Size, Trends & Ownership Statistics,” 2022; and APPA, “National Pet Industry Exceeds Over $100 Billion in Sales for First Time in Industry History,” April 2021.
2Research and Global Markets Insights, “Pet Care Market Revenue to Cross USD 350 Bn by 2027: Global Market Insights, Inc.,” February 2021; and Business Wire release for Research and Markets, “Global Pet Care Markets Report 2021: Market to Surpass $250 Billion by 2027—Pet Humanization Paves Way for Premiumization—ResearchAndMarkets.com,” July 2021.
3U.S. Bureau of Labor Statistics, “Employment Characteristics of Families Summary—2021,” April 2022.
4Morgan Stanley, “Welcome to the Petriarchy,” March 2021.
5Pet Food Processing, “APPA releases generational report on pet ownership, purchasing trends,” March 2022.
6Lending Tree, “28% of Pet Owners Make Purchases for Social Media Posts,” September 2021.
7Fox News, “A third of pet owners prefer their animals to their children, survey finds,” September 2019.
8Global Pets, “Global research study indicates consumer pet food and ingredient desires,” February 2022.
9North American Pet Health Insurance Association (NAPHIA), “State of the Industry 2022,” May 2022.
10APPA, “National Pet Industry Exceeds $123 Billion in Sales and Sets New Benchmark,” April 2022.
11American Veterinary Medical Association, “Are we in a veterinary workforce crisis?” August 2021.
ABOUT The ETF

  • Ticker Symbol

    PAWZ

  • Intraday Symbol

    PAWZ.IV

  • Bloomberg Index Symbol

    PETCARE

  • Investment Objective

    ProShares Pet Care ETF seeks investment results, before fees and expenses, that track the performance of the FactSet Pet Care Index

  • Inception

    11/05/2018

ABOUT THE INDEX

The index consists of U.S. and international companies that potentially stand to benefit from interest in, and resources spent on, pet ownership.

Download Prospectus pdf pdf-hover This links to a pdf file This link opens a new window

Take a closer look at PAWZ

PAWZ Fund Details

ProShares Pet Care ETF

PAWZ is the first ETF focused on the pet care industry, giving investors the opportunity to gain broad exposure to public companies in the global pet care industry.

This information is not meant to be investment advice. There is no guarantee that the strategies discussed will be effective. Investment comparisons are for illustrative purposes only and not meant to be all-inclusive.

Any forward-looking statements herein are based on expectations of ProShare Advisors LLC at this time. ProShare Advisors LLC undertakes no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investing is currently subject to additional risks and uncertainties related to COVID-19, including general economic, market and business conditions; changes in laws or regulations or other actions made by governmental authorities or regulatory bodies; and world economic and political developments. Investing involves risk, including the possible loss of principal. This information is not meant to be investment advice.

Investing involves risk, including the possible loss of principal. This ProShares ETF is subject to certain risks, including the risk that the fund may not track the performance of the index and that the fund’s market price may fluctuate, which may decrease performance. Please see their summary and full prospectuses for a more complete description of risks.

The fund is subject to the risks faced by companies in the pet care industry. Although the pet care industry has historically seen steady growth and has been resilient to economic downturns, these trends may not continue or may reverse. This fund is non-diversified and concentrates its investments in certain sectors. Non-diversified and narrowly focused investments typically exhibit higher volatility.

Investments in smaller companies typically exhibit higher volatility. Small- and mid-cap companies may have limited product lines or resources, may be dependent upon a particular market niche and may have greater fluctuations in price than the stocks of larger companies. Small- and mid-cap companies may lack the financial and personnel resources to handle economic or industry-wide setbacks and, as a result, such setbacks could have a greater effect on small- and mid-cap security prices.

Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing.

The "FactSet Pet Care Index" and "FactSet" are trademarks of FactSet Research Systems Inc. and have been licensed for use by ProShares. ProShares have not been passed on by these entities or their affiliates as to their legality or suitability. ProShares based on the FactSet Pet Care Index are not sponsored, endorsed, sold, or promoted by FactSet Research Systems Inc., and it makes no representation regarding the advisability of investing in ProShares. THIS ENTITY AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES. FactSet Research Systems Inc. does not guarantee the accuracy and/or the completeness of the FactSet Pet Care Index or any data included therein, and FactSet Research Systems Inc. shall have no liability for any errors, omissions, or interruptions therein.

ProShares ETFs (ProShares Trust and ProShares Trust II) are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.

Your use of this site signifies that you accept our Terms and Conditions of Use.