The GLP-1 & Weight Loss ETF (OZEM) is a new exchange-traded fund from Roundhill Investments that focuses on companies involved in developing GLP-1 weight loss drugs. The ETF includes leaders in the industry such as Eli Lilly and Novo Nordisk, as well as other players working on new treatments for weight loss and diabetes. Roundhill’s CEO, Dave Mazza, believes that there is explosive growth potential in this sector, and that active management can help identify companies with promising drugs in development.
Eli Lilly and Novo Nordisk each hold around a 20% weighting in the ETF, with other companies like Zealand Pharma, Amgen, and Chugai Pharmaceutical making up smaller positions. Over the past year, Eli Lilly has seen a 90% increase in its stock price, while Novo Nordisk has gained 68%. Mazza believes that despite these gains, the weight loss drug industry is still in its early stages of development, and that there is plenty of room for growth as more companies enter the market with innovative products.
Mazza compares the potential growth of GLP-1 drugmakers to that of companies in the AI space, such as Nvidia. He believes that companies like Eli Lilly and Novo Nordisk have a head start in the industry and that their focus on diabetes and weight loss drugs has produced remarkable results. He is confident that as more companies enter the market with new drugs, the industry will continue to grow and evolve, offering investors new opportunities for growth and profits.
Despite a slight decline in the ETF’s shares after its launch, Mazza remains optimistic about the long-term potential of GLP-1 weight loss drugs and the companies developing them. He believes that investors have not missed out on the rally in this sector, and that there is still significant growth potential ahead. With the success of companies like Eli Lilly and Novo Nordisk leading the way, Mazza sees a bright future for the industry and the ETF that focuses on it.
Overall, Roundhill’s GLP-1 & Weight Loss ETF offers investors exposure to a growing and potentially lucrative market in weight loss drugs. With established leaders like Eli Lilly and Novo Nordisk as well as up-and-coming players in the industry, the ETF provides a diversified investment opportunity for those interested in capitalizing on the long-term growth potential of this sector. As more companies continue to innovate and develop new treatments for weight loss and diabetes, the ETF is well-positioned to benefit from the expanding market and deliver returns to its investors.
