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Healthcare ETFs for the Weight-Loss Drug Boom & Beyond

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  • (1:15) - Learning The Background of Tema ETFs
  • (3:30) - What Are GLP-1 Drugs and How Do They Work?
  • (9:45) - Who Will Be Leaders In Developing These New Drugs?
  • (15:00) - What Are The Most Promising Weight-loss Drugs In Development Right Now?
  • (21:10) - How Will Political Pressure To Reduce Prices Impact These Companies?
  • (25:05) - Tema Obesity & Cardiometabolic ETF: HRTS
  • (29:25) - Tema Oncology ETF: CANC
  • (34:55) - Tema Neuroscience and Mental Health ETF: MNTL
  • (39:30) - Tema American Reshoring ETF: RSHO
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Yuri Khodjamirian, CIO of Tema ETFs, about attractive investment opportunities in the healthcare space.

Two dominant investing themes over the past year have been AI and weight-loss drugs. While there's a considerable investor frenzy around AI, particularly with the "Magnificent Seven" and now the "Fabulous Four," shares of two companies that dominate the weight-loss drug market have also surged over the past year due to soaring demand for their products.

Shares of Eli Lilly (LLY - Free Report) are up over 120% over the past year, and its market capitalization surpassed Tesla's (TSLA) earlier this year. Shares of Novo Nordisk (NVO - Free Report) are up over 65%, making it the biggest European firm by market value.

GLP-1 medications, initially used to treat diabetes, were later discovered to suppress appetite and lead to significant weight loss. Recent studies suggest that GLP-1 drugs may also slow the progression of Parkinson’s symptoms in humans.

Goldman Sachs forecasts that the market for these products could soar to $100 billion by 2030, with Eli Lilly and Novo Nordisk at the forefront.

A new report revealed that cancer rates are rising for several common cancers, and more young people are getting cancer. However, the encouraging trend is that we're getting better at treating cancer.

Pharmaceutical companies are spending billions of dollars to develop drugs or acquire innovative biotech companies working on new cures.

The Tema Obesity & Cardiometabolic ETF (HRTS - Free Report) is the first weight loss and obesity-focused ETF on the market. The Tema Oncology ETF (CANC - Free Report) provides exposure to companies pioneering cures and early detection of cancer.

Many American companies are now focusing on reshoring to make their supply chains safer and more reliable. Recent conflicts in Ukraine and the Middle East, along with rising U.S.-China tensions, have further accelerated this trend.

Chip-making giant Taiwan Semiconductor (TSM - Free Report) is investing $65 billion in three cutting-edge fabrication plants in Arizona. The company has received billions from the US government to bring the production of the most advanced chips to America.

The Tema American Reshoring ETF (RSHO - Free Report) invests in companies that stand to benefit from manufacturing moving back to the US.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

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