Rize ETFs has announced that it has launched the Rize Emerging Market Internet and Ecommerce UCITS ETF – a new EM-focused ETF that provides exposure to the EM digital consumer market while capping individual country exposure to 25 per cent, and Europe’s first pet care ETF – the Rize Pet Care UCITS ETF – investing in companies benefiting from the rise in ownership and the humanisation of pets.
Both ETFs are listed on the London Stock Exchange (LSE) and the Frankfurt Stock Exchange (Xetra). Rize Pet Care UCITS ETF will trade under the listing lines PETZ (USD) and PAWZ (GBP) on the LSE and KATZ (EUR) on Xetra, while Rize Emerging Market Internet and Ecommerce UCITS ETF will trade under 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.
Writing about the Rize Emerging Market Internet and Ecommerce UCITS ETF, the firm says that 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.
Today, emerging markets comprise more than half of the world’s population, many of whom are working age. 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.
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. 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 per cent – ensuring the strategy never defaults to a proxy China fund – something that continues to plague many emerging market funds.”
Discussing the Rize Pet Care UCITS ETF, Rize writes that 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 per cent over the next 10 years. The firm says that pet owners – especially younger ones – have been 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 also looks favourable and is expected to grow from USD980 in 2020 to USD1,292 by 2025 – and then expand by another USD600 to USD1,909 by 2030.
Rahul Bhushan, Co-Founder and Director at Rize ETF, comments: “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. In addition, many single-person households, unmarried and childless families are increasingly adopting pets, while the growth of our ageing population has also led to a greater number of furry companions. Finally, our flexible lifestyles, and the rise of WFH, has meant pet adoption has suddenly become a lot easier. 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 is offering products with compelling pricing power and inelastic demand. We are excited to allow our investor base access to this long-tail megatrend.”
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