ETFs
Weight loss stocks set for big gains, suggests Tema ETFs CEO
Tema ETFs capitalized on risk appetite for weight loss stocks.
It’s behind the GLP-1, obesity and cardiometabolic ETF (HRTS)which is up 26% since its launch last November.
Company founder and CEO Maurits Pot believes that success in weight loss isn’t just about hype.
“The companies we follow and invest in are not just focused on one weight loss approach, but other approaches as well,” Pot said. CNBC’s “ETF Edge”“Monday. “We could see a world where the majority of the world’s population is taking GLP-1, not just for weight loss, but for other diseases.”
Its major holdings include Mounjaro maker Eli Lilly and Ozempic and Wegovy maker Novo Nordisk. Eli Lilly is up 57% since the beginning of the year, while Novo Nordisk is up 38%.
Moreover, Pot does not expect the price of GLP-1 to discourage new patients. He believes the price will drop significantly over the next two to three years.
“We could see the price of drugs go down from $12,000 to maybe $6,000 a year, or maybe $500 a month,” said Pot, who points out that insurance coverage often makes treatments more affordable for patients.