The market for anti-obesity drugs is massive one, worth potentially $100 billion or more based on some estimates. It’s an exciting opportunity to invest in, but it’s not an easy one to keep track of.
Today, Eli Lilly (NYSE:LLY) and Novo Nordisk (NYSE:NVO) are the big players in the industry. Eli Lilly makes Zepbound, which the Food and Drug Administration recently approved for treating weight loss. And Novo Nordisk makes Ozempic, which is approved for diabetes but which people have been taking for weight loss. It also has Wegovy, which is its approved treatment for weight loss.
The problem is that down the road, there may be even more weight loss drugs to keep an eye on. For investors, that means it may become more difficult to track which stocks to buy if you want to invest into this promising area of healthcare.
Luckily, there’s a new exchange-traded fund (ETF) that gives you access to the highly popular GLP-1 drug market. The Roundhill GLP-1 & Weight Loss ETF (NASDAQ:OZEM) began trading in May and could make a great option. Eli Lilly and Novo Nordisk and its top two holdings by a mile – they combine for more than 40% of the fund’s weight. But there are also other, lesser-known options in the fund, including Zealand Pharma (OTC:ZLDPF) and Altimmune (NASDAQ:ALT).
If you don’t want to have to keep tabs on who’s who in the weight loss industry, this can be a great fund to invest in. It has an expense ratio of 0.59% and there are 31 holdings in the fund.
