Tema ETFs benefited from risk appetite in underweight stocks.
This index is second only to the GLP-1 Obesity and Cardiovascular Disease Index (HRTS), which has risen 26% since its inception last November.
The company's founder and CEO, Maurits Bott, believes that successful weight loss business is not based on hype alone.
“The companies we follow and the companies we invest in are not just looking at weight loss approaches, but also looking at other approaches,” Boot told CNBC’s “ETF Edge” on Monday. “We may see a world where most of the world’s population is taking GLP-1, not just for weight loss, but for other diseases.”
Its major holdings include Eli Lilly, the manufacturer of Mujaro, Ozempic, the manufacturer of Wegovy, and Novo Nordisk, the manufacturer of Wegovy. Eli Lilly It is up 57% so far this year, while Novo Nordisk It increased by 38%.
Furthermore, Pott doesn’t expect the high GLP-1 prices to discourage new patients. He believes prices will fall significantly over the next two to three years.
“We could see drug prices go from $12,000 to maybe $6,000 a year, or maybe $500 a month,” said Pott, who notes that insurance coverage often makes treatments more expensive for patients.
