Roundhill Investments has recently launched a new Exchange-Traded Fund (ETF) known as the GLP-1 & Weight Loss ETF (OZEM). This ETF is focused on the long-term growth potential of GLP-1 weight loss drugs and pairs leading companies in this industry, such as Eli Lilly and Novo Nordisk, with players developing innovative treatments for weight loss and diabetes. Roundhill’s CEO, Dave Mazza, believes that there is explosive growth potential in this sector and sees active management as a way to capitalize on this potential. Eli Lilly and Novo Nordisk make up approximately 20% of the ETF’s holdings, with other key positions held in companies like Zealand Pharma, Amgen, and Chugai Pharmaceutical.
Over the past year, Eli Lilly has seen a 90% increase in its stock price, while Novo Nordisk has gained 68%. Despite this growth, Mazza believes that the weight loss drug industry is still in its early stages and that there is plenty of room for growth. He compares the potential of GLP-1 drugmakers to AI-linked stocks, noting that companies like Eli Lilly and Novo Nordisk have a head start in the market due to their early focus on diabetes and weight loss drugs. Mazza believes that these companies have been able to produce remarkable results in this space.
Although the GLP-1 & Weight Loss ETF experienced a slight decrease in its share price after its launch, Mazza remains optimistic about the future of this industry. He believes that there is significant potential for growth as more companies enter the market with new and innovative drugs that do not require injectables. Mazza highlights the similarities between the growth trajectory of GLP-1 drugmakers and AI-linked stocks, pointing to the early success of companies like Eli Lilly and Novo Nordisk in the weight loss drug space.
Overall, Roundhill Investments’ GLP-1 & Weight Loss ETF provides investors with exposure to companies at the forefront of the weight loss drug industry. By focusing on innovative treatments for weight loss and diabetes, the ETF aims to capture the growth potential of this sector. With leading companies like Eli Lilly and Novo Nordisk in its holdings, the ETF offers investors the opportunity to participate in the evolving landscape of weight loss treatments and potentially capitalize on the future success of this industry.
