ETFs
Play These New ETFs to Tap the Lucrative Weight Loss Drug Market
Global obesity rates have almost tripled since 1975 and are expected to affect more than half the population by 2035, according to the WHO and Goldman Sachs. Pioneering GLP-1 treatments, such as Ozempic, Wegovy and Zepbound, are now at the forefront of medical advances in weight management.
GLP-1 drugs, originally used to treat diabetes, were later discovered to suppress appetite and cause considerable weight loss. Recent studies suggest that GLP-1 drugs may also slow the progression of Parkinson’s symptoms in humans and reduce the risk of heart attack, stroke and death by about 20%. cardiovascular.
It’s no surprise that investors are watching these developments closely. After all, more than 42% of American adults and 1 billion people worldwide are now obese. There is intense competition among companies producing GLP-1 drugs, and shares of many of these companies have seen significant gains in recent months.
Inside the investment potential
Roundhill Investment believes that weight loss drugs, particularly GLP-1 agonists, represent one of the most revolutionary advances in the global pharmaceutical industry. The market for GLP-1 drugs is expected to grow from $6 billion to $100 billion by 2030, according to Goldman Sachs.
Two companies – Elie Lilly LLY and Novo Nordisk NVO – dominates the weight loss drug market and their shares have surged over the past year due to growing demand for their products. Shares of Eli Lilly are up about 85% over the past year and shares of Novo Nordisk are up 58%.
Focus on ETFs
With this in mind, below we highlight a few pure-play weight-loss drug maker ETFs that can be leveraged on this burgeoning trend.
Obesity & Cardiometabolic ETF SHR
The Tema Obesity & Cardiometabolic ETF seeks to provide long-term capital growth by investing in companies leading the fight against obesity and cardiometabolic diseases. The fund charges 75 basis points in net fees. The fund has reached $60 million since its launch in November.
The fund has 44 securities in total. Vertex Pharma (5.79%), Amgen (5.58%) and Eli Lilly (5.10%) are the three main stocks in the fund. The United States takes 78.22% of the fund, followed by Denmark (8.05%) and the United Kingdom (3.64%).
Amplify Weight Loss Drugs and Treatments ETF (THNR)
The recently launched Amplify Weight Loss Drug & Treatment ETF seeks investment results that generally correspond to the performance of the VettaFi Weight Loss Drug & Treatment Index. The fund charges 59 basis points in fees.
The 20-stock fund is heavily dominated by Eli Lilly (15.22%) and Novo Nordisk A/S (14.87%). Drug manufacturers take about 70% of the fund while facilitators take care of the rest. The United States takes 51% of the fund, followed by Denmark (18%) and Japan (10%).
The story continues
Roundhill GLP-1 and Weight Loss ETF (ÖZEM)
The 27-stock fund, which also made a recent debut, provides exposure to companies involved in the development of pharmaceutical drugs and/or supplements that can be used to help individuals lose weight, maintain an ideal weight and/or or to maintain their body composition during their activity. weightloss. OZEM is an actively managed ETF. The fund charges 59 basis points in fees.
This fund is heavy on Eli Lilly (20.66%) and Novo Nordisk A/S (20.21%). Pharmaceutical stocks make up about 66.4% of the fund, while biotech (30.9%) is in second place. The United States occupies 53% of the fund, followed by Denmark (26%) and Japan (6.9%).
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Novo Nordisk A/S (NVO): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
Tema Obesity and Cardiometabolic ETF (HRTS): ETF Research Reports