The Tema ETF has been taking advantage of risk appetite in weight loss stocks.
It trails the GLP-1, Obesity and Cardiometabolic ETF (HRTS), which is up 26% since its launch in November.
Maurits Pot, the company’s founder and CEO, believes the successful weight loss industry is based on more than just hype.
“The companies we track and the companies we invest in are not just looking for ways to lose weight but are looking for other ways,” Porter told CNBC’s “ETF Edge” on Monday. “We can see the majority of the world taking GLP-1, Not only for weight loss, but also for treating other illnesses.”
His top holdings include Mounjaro maker Eli Lilly and Ozempic and Wegovy maker Novo Nordisk. Eli Lilly and Company It’s up 57% year to date, while Novo Nordisk It’s up 38%.
Additionally, Pot does not expect the price of GLP-1 to be prohibitive for new patients. He believes they will decline significantly over the next two to three years.
“We could see drug prices drop from $12,000 a year to about $6,000, so maybe $500 a month,” Pot said, noting that insurance coverage often makes treatment more affordable for patients.
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