Rize ETF Unveils Europe’s First Pet Care ETF in Dual Launch
ETFs are listed on the London Stock Exchange and Deutsche Boerse
Rize ETF has launched Europe’s first ETF targeting the pet care industry and another capturing the emerging internet and e-commerce sectors.
The Rize Pet Care UCITS ETF (PETZ) and Rize Emerging Markets and Ecommerce UCITS ETF (EMRJ) are listed on the London Stock Exchange and Deutsche Boerse with total expense ratios (TER) of 0.45% and 0, 55%, respectively.
Both ETFs will be listed on Borsa Italiana and SIX Swiss Exchange in due course.
PETZ physically replicates the Foxberry Pet Care Index of 29 companies involved in pet food and consumables, pet retail goods and services, pet health, pet insurance and veterinary services and equipment.
Only companies deriving at least 20% of their revenue from the target theme, with a market capitalization of at least $750 million and daily trading volumes above $2 million are selected.
The number of pet owners is expected to increase by 14% over the next 10 years, with Morgan Stanley research predicting that household spending per pet will rise from $980 in 2020 to $1,909 in 2030.
Rahul Bhushan (Photo)co-founder and director of Rize ETF, said, “Many single-person households, unmarried and childless families are increasingly adopting pets and the growth of our aging population has also led to a greater number of furry companions.
“With the rise of working from home, adopting pets has suddenly become much easier and people are making a long-term commitment to their pets. For pet care companies, this has meant big business.
EMRJ tracks the Foxberry Emerging Market Internet & Ecommerce Index of 57 companies involved in digital commerce and online marketplaces, on-demand food, ridesharing, social commerce, online travel, logistics and fulfillment, online search, digital advertising, digital media, video games and entertainment.
Like PETZ, EMRJ’s index only captures companies that derive at least 20% of their revenue from the desired theme. Companies must also have a minimum market capitalization of $500 million, a daily trading volume greater than $2 million. Each emerging market’s weightings are also capped at 25% on index rebalancing days.
Stuart Forbes, co-founder and director of Rize ETF, said: “In the coming years, we envision two converging but mutually reinforcing megatrends: the Internet as an incubator for technological innovation and e-commerce as a catalyst for behavior change.
“Our ETF does two things. First, it incorporates our standard ESG screening to avoid exposure to bad corporate citizens. And second, it limits exposure to a single country to 25% – ensuring the strategy never defaults on a Chinese proxy fund – which continues to plague many emerging market funds.
The two products are the latest additions to its roster of thematic ETFs following the launch of the Rize Digital Payments Economy UCITS ETF (PMNT) last November.
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