Tema ETFs Sees Growth in Weight Loss Stocks Amid Rising Demand

Tema ETFs is experiencing significant success with its GLP-1, Obesity & Cardiometabolic ETF (HRTS), which has surged 26% since its launch last November. The firm’s founder and CEO, Maurits Pot, attributes this growth to a broader understanding of weight loss treatments that extend beyond mere hype. In an interview with CNBC's "ETF Edge," Pot emphasized that the companies within their portfolio are exploring various applications of GLP-1 medications, suggesting a future where these treatments are widely used for multiple health conditions, not just weight loss. Pot highlighted key holdings in the ETF, including Eli Lilly, the manufacturer of Mounjaro, and Novo Nordisk, known for its products Ozempic and Wegovy. Both companies have seen impressive stock performance this year, with Eli Lilly rising 57% and Novo Nordisk increasing by 38%. This growth reflects a growing investor confidence in the potential of GLP-1 medications to address obesity and related health issues. Looking ahead, Pot remains optimistic about the accessibility of GLP-1 treatments, predicting a significant reduction in costs over the next few years. He estimates that the annual price of these medications could drop from $12,000 to around $6,000, or approximately $500 per month. Pot also noted that insurance coverage often alleviates the financial burden for patients, making these treatments more attainable. As the demand for effective weight loss solutions continues to rise, Tema ETFs is positioning itself at the forefront of this evolving market, driven by innovative approaches to health and wellness.