From CNBC: 2024-05-27 12:01:01

A new exchange-traded fund, OZEM, focuses on GLP-1 weight loss drugs, with Eli Lilly and Novo Nordisk as key components. Roundhill Investments CEO Dave Mazza sees significant growth potential in the industry. The ETF also includes Zealand Pharma, Amgen, and Chugai Pharmaceutical in its holdings.

Eli Lilly and Novo Nordisk make up 20% of the ETF, with Zealand Pharma, Amgen, and Chugai Pharmaceutical having smaller weightings. Eli Lilly and Novo Nordisk have seen impressive stock gains in the past year. Mazza believes the weight loss drug industry is still in its early stages, leaving plenty of room for growth.

Mazza compared GLP-1 drugmakers to AI-related stocks like Nvidia, emphasizing the potential for growth and market expansion. Despite a slight dip in shares of the new ETF after its launch, Mazza remains optimistic about the future of the weight loss drug market and the opportunities for investors.

Read more: Weight loss drug ETF bets big on Eli Lilly, Novo Nordisk