Tema ETFs have capitalized on the risk appetite for weight loss stocks.
It trails the GLP-1, Obesity & Cardiometabolic ETF (HRTS), which is up 26% since its inception last November.
The company’s founder and CEO, Maurits Pot, thinks the winning weight loss business isn’t just based on hype.
“The companies we follow and the companies we invest in are not just looking at a weight loss approach, but other approaches as well,” 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 as well.”
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 has increased by 38%.
Furthermore, Pot does not expect the price tag for GLP-1s to discourage new patients. He thinks these will drop significantly over the next two to three years.
“We could see the price of drugs drop from $12,000 to maybe $6,000 a year, so maybe $500 a month,” says Pot, noting that insurance coverage often makes treatments more affordable for patients.
