Janus Capital Group has launched four thematic ETFs that allow investors to target companies that may benefit from global demographic and consumer shifts.
These themes include long‐term care for the elderly, an increased focus on health and fitness, the treatment and care for obesity and an increased demand for organic products.
"Changes in demographics and lifestyle are altering the investment landscape," says Nick Cherney, Senior Vice President and Head of Exchange Traded Products for Janus Capital Group. "These thematic Exchange Traded Funds are designed to capitalise on those shifts to give advisors new tools that can help clients achieve better financial outcomes."
The ETFs are overseen by the Janus Exchange Traded Products Team and are not actively managed products.
Increasing longevity is lifting demand across the long‐term care industry. The Long‐Term Care ETF (NASDAQ:OLD) seeks exposure to companies globally that are positioned to profit from owning or operating senior living facilities, specialty hospitals, providing nursing services and biotech companies for age‐related illnesses.
By 2050, the US population aged 65+ will almost double to 83.7 million, while those aged 85+ will increase four times to 19 million1. With 10,000 boomers set to retire every day in the US through 20302, one in four 65‐year‐olds can expect to live until at least 903, with the result that the USD132 billion US nursing care facilities industry4 will need 1.2 million more employees by 20255.
The increasing passion for fitness means the global population is consuming more from companies that serve health needs. The Health and Fitness ETF (NASDAQ:FITS) seeks exposure to companies in nutrition, sports apparel and fitness technology and equipment, and the health club sector, which are poised to take advantage of the growing trend.
Since 2008, US health club memberships have climbed almost 19 per cent annually, taking revenues to USD24.2 billion in 20146. Sales of fitness trackers and other wearable technologies may double to USD5.4 billion by 20197, while revenue from footwear and other sports apparel has grown at a 42 per cent pace over the past seven years8.
Investors can participate in the potential benefits of our increasing desire for naturally derived food and personal care items through The Organics ETF (NASDAQ:ORG), which seeks exposure to companies that service, produce, distribute, market or sell organic food, beverages, cosmetics, supplements or packaging.
Sales of organic products in the US have surged tenfold over 17 years to USD39 billion in 2014 and there are now more than 19,500 organic farming operations in the US, helping to satisfy an expected 16 per cent rise in demand globally for organic food annually through 20209. And it’s not just food: the market for natural cosmetics, hair and skin care may reach USD16 billion by 202010.
The Obesity ETF (NASDAQ:SLIM) seeks exposure to companies that provide treatment and care for obesity and obesity‐related disease, including biotechnology and pharmaceutical, healthcare and medical device companies, other health care firms, the weight loss market and supplement companies.
More than 640 million people globally are classified as obese, a 600 per cent rise in 40 years11. Worldwide, more than 10 per cent of men and 14 per cent of women are now classified as obese – numbers that are predicted to climb to 18 per cent of men and 21 per cent of women by 202512. In the US, 75 per cent of men and 67 per cent of women ages 25 and older are now either overweight or obese13. Globally, obesity and related treatment costs USD2 trillion a year in healthcare and lost productivity14. As a result, the low‐calorie food market in the US is projected to be worth USD10.4 billion by 201915.