HOW TO PLAY IT

According to Scott Helfstein

Pets live in 70% of U.S households, and pet spending hit a record $103 billion in 2020, rising 7%. Chewy is the e-commerce leader, but less than half of overall spending is on kibble and treats. Veterinarian care, medicines and services like grooming are the majority. To build diversi ed exposure, ProShares o ers a Pet Care ETF, which counts Chewy as a top holding in a 32-stock portfolio. Other large bets are pet medicine giant Zoetis, animal diagnostic equipment leader IDEXX Laboratories and vaccine maker Dechra Pharmaceuticals. “The industry has shown tremendous growth. It’s a story of strong fundamentals,” says Sco Helfstein, director of Thematic Strategies at ProShares, who notes that sales per share among companies in his ETF are up 41% in 2021, versus 7% for the S&P 500.