This ETF is trying to satisfy appetites for weight loss stocks

Finance

In this article

Tema ETFs has been capitalizing on the risk appetite for weight loss stocks.

It is behind the GLP-1, Obesity & Cardiometabolic ETF (HRTS), which is up 26% since its inception last November.

The firm’s founder and CEO Maurits Pot thinks the winning weight loss trade isn’t based on just hype.

“The companies we track and the companies we invest in are looking not just at a weight loss approach, but also other approaches,” Pot told CNBC’s “ETF Edge” on Monday. “We could see a world where the majority of the world’s population takes a GLP-1, not just for weight loss, but for other diseases.”

His top holdings include Mounjaro manufacturer Eli Lilly and Ozempic and Wegovy maker Novo Nordisk. Eli Lilly is up 57% so far this year, while Novo Nordisk is up 38%.

Plus, Pot does not expect the price tag for GLP-1s to discourage new patients. He thinks they will come down significantly in the next two to three years.

“We could see drug pricing come down from $12,000 to maybe $6,000 a year, so maybe $500 a month,” said Pot, who points out insurance coverage often makes the treatments more affordable to patients.

Disclaimer

Products You May Like

Articles You May Like

Here’s why Wells Fargo stock is down 7% despite the bank’s quarterly earnings beat
Ambani’s wedding kicks off in India this weekend. Here’s who will be at the star-studded event
Ericsson shares rise after sales fall less than expected, North America returns to growth
The right mix of retirement accounts can lower your future taxes, experts say — here’s what to know
Federal judge partially blocks FTC ban on noncompetes. Here’s what that means for workers

Leave a Reply

Your email address will not be published. Required fields are marked *