Rize ETF European investors now have the opportunity to invest in the booming Global Pet industry and the Emerging Market Internet Revolution.
Rahul Bhushan, co-founder of Rize ETF
Launching today are Europe’s first pet care ETF – the Rize Pet Care UCITS ETF – investing in companies that are benefiting from the rise in the ownership and humanisation of pets – and the Rize Emerging Market Internet and Ecommerce UCITS ETF – a new EM-focused thematic ETF that provides exposure to the EM digital consumer market while capping individual country exposure. To do so, the Emerging Market ETF ensures that exposure to any one single emerging market never exceeds 25% at the index rebalances.
Both ETFs are listing today on the London Stock Exchange (LSE) and the Frankfurt Stock Exchange (Xetra). Rize Pet Care UCITS ETF will trade on the listing lines PETZ (USD) and PAWZ (GBP) on the LSE and KATZ (EUR) on Xetra. Rize Emerging Market Internet and Ecommerce UCITS ETF will trade on the listing lines EMRJ (USD) and EMRP (GBP) on the LSE and ECOM (EUR) on Xetra. Both ETFs will also be listed on the Borsa Italiana and the SIX Swiss Exchange in due course.
Rize Pet Care UCITS ETF
Much was made of the explosion in pet ownership during the Covid-19 lockdowns. While the pandemic certainly accelerated pet ownership, household formation among Millennials and Gen Z is likely to sustain it. Pet ownership is expected to rise by +14% over the next 10 years. According to a survey conducted by AlphaWise (Morgan Stanley) in the middle of last year, 65% of 18- to 34-year-olds were planning on acquiring (or adding) a pet over the next 5 years. What’s more, pet owners – especially younger ones – were found to be spending persistently more on their pets than previous generations.
According to further research published by Morgan Stanley, the trajectory of household spending per-pet looks favourable and is expected to grow from $980 in 2020 to $1,292 by 2025 – and then expand by another $600 to $1,909 by 2030. This presents an optimistic outlook for the pet sector.
Rahul Bhushan, Co-Founder and Director at Rize ETF, comments: “There are several themes shaping the future of pet care. First, is the trend toward humanisation. In the past 20 years, pets have gone from sleeping in our backyards to sleeping in our beds. We now treat our pets like our children.
Anthrozoologists like John Bradshaw have argued that pet-keeping is an intrinstic part of human nature and what we’re seeing today with Millennial and Gen Z families is a new, more nurturing type of pet ownership. Second, and related, is the decline of the traditional nuclear family. Many single-person households, unmarried and childless families are increasingly adopting pets and the growth of our ageing population has also led to a greater number of furry companions. Third, is our digital – and post-Covid –flexible lifestyles. With the rise of WFH, pet adoption has suddenly become a lot easier, and people are making long-term commitments to their pets. For pet care companies, this has meant big business.
Today’s pet industry stands on strong footing, with pet ownership at all-time highs, and offering products with compelling pricing power and inelastic demand. We are excited that our investor can now access this long-tail megatrend via our Rize Pet Care UCITS ETF.”
Rize Emerging Market Internet and Ecommerce UCITS ETF
The digital revolution has not been limited to the developed world. Today’s emerging markets have their own, burgeoning online economies. Rising disposable incomes, urbanisation, positive reform momentum, strong demographics and the widespread adoption of digital devices form the backbones of this new megatrend. Most of us are already familiar with the digital giants of the emerging world from Baidu (China’s answer to Google) to MercadoLibre (Argentina’s answer to Amazon) and MakeMyTrip (India’s answer to TripAdvisor). Yet, these companies are only scratching the surface of the outsized opportunity. Today, emerging markets comprise more than half of the world’s population, many of whom are working age. And these people are driving increasing digital consumption and demanding better services due to greater awareness, social connectivity, mobility and concerns for sustainability. The outlook for digital demand, therefore, has never looked better across emerging markets.
Stuart Forbes, Co-Founder and Director at Rize ETF, comments: “We are excited to be launching our first regional thematic ETF, specifically targeting the rise of the emerging market digital consumer. The emerging world contains 22 of the world’s 37 megacities. More than half of the world’s population lives in emerging markets, including 86% of the world’s Millennials and 89% of the world’s Gen Z. In the years ahead, we are looking at two converging but mutually reinforcing megatrends: the internet as an incubator for technological innovation and ecommerce as a catalyst for behavioural change. We believe our new ETF is aptly positioned to capture the seminal opportunity. At the same time, we recognise that investing in emerging markets does not come without risk. As such, our ETF does two things. Firstly, it integrates our standard ESG screening to avoid exposure to the bad corporate citizens. And secondly, it limits any single country exposure to 25% – ensuring that the strategy never defaults to a proxy China fund –something that plagues many emerging market funds.”
— Euromonitor International —
Both ETFs were created in collaboration with the research teams of Euromonitor International, the world’s largest independent, non-bank research and consulting group based in London, England. The indices are being administered by Foxberry Limited, the UK-based index manage
Source: ETFWorld.co.uk
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