Weight-Loss Drug ETFs Generate Skinnier Returns Than Expected

Lilly Riddle

Wed, Jun 11, 2025, 3:05 AM 3 min read

GLP-1 investors haven’t gained as much as expected from others’ losses.

Since the FDA approved Wegovy, also known as semaglutide, as an injectactable treatment to help people manage their weight, several exchange-traded funds tracking the performance of the company and its rivals in GLP-1 medications have largely failed to reflect the massive popularity of the drugs themselves. Still, the companies behind the funds seem to be staying the course, with faith that the drugs will appeal to increasingly wider audiences — offering healthcare investors an opportunity to get in before the market peaks.

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The main ETFs in the weight-loss drug segment are the Tema Cardiovascular and Metabolic ETF (HRTS), the Roundhill GLP-1 and Weight Loss ETF (OZEM) and Amplify Weight Loss Drug & Treatment ETF (THNR). Despite THNR hitting a 52-week high recently — roughly $22 a share, up from a low of $18.56 a share — both it and HRTS have fallen 11% over the past year. HRTS, the first to launch, has holdings in 30 to 40 companies. “It’s a strategy which has done well, but frankly, has been volatile,” Maurits Pot, the founder and CEO of Tema ETF Management, said. OZEM, the second-largest of the funds by assets, has outperformed the other two, gaining more than 5% in the same period.

One reason for the underwhelming returns is that the funds’ main holdings are primarily in a handful of pharmaceutical giants such as Ozempic manufacturer Novo Nordisk, whose stock has underperformed of late. Other major holdings for all three products include Eli Lilly & Co., Zealand Pharma and Roche Holding AG. The healthcare field as a whole is facing volatility, Pot noted, making it all the more important for investors to remain calm. “This is a strategy which is differentiated by construction, differentiated by how people can approach it,” he said. All three funds also have relatively high expense ratios: OZEM and THNR’s ratios sit at 0.59%, while HRTS has a whopping 0.75% fee:

• OZEM launched in May 2024 and has $37 million in AUM.

• HRTS launched in November 2023 and has $51.8 million in AUM.

• THNR launched in May 2024 and has $2.9 million in AUM.

Ozempi-mania: Despite the challenges, there may be reason for optimism about the niche’s future as competition in the weight-loss drug marketplace ramps up. Since 2021, new prescription and over-the-counter weight-loss drug medications have hit the market following FDA approval, under names like Zepbound, Olistat, and Contrave. Investors may also want to get in on the weight-loss drug market for its non-weight-loss effects: Recent trials have shown the drugs may help to protect against dementia.“There’ll be short-term volatility,” Pot said. “Our view is that won’t last forever, and the need has never been greater.”

This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter.