With the start of 2026, the annual focus on weight loss resolutions presents a timely opportunity for financial advisors to discuss the investment potential of GLP-1 agonists with their clients. This class of drugs has fundamentally altered the healthcare sector’s growth projections. As the market matures, advisors are increasingly evaluating weight loss ETFs to capture this thematic shift.
THNR: The Index-Based Pure Play
The Amplify Weight Loss Drug & Treatment ETF (THNR) offers an index-based entry point into this segment. THNR tracks the VettaFi Weight Loss Drug & Treatment Index, which specifically targets companies engaged in the research, development, and manufacturing of GLP-1 agonists and their alternatives.
The weight loss ETF has a net expense ratio of 0.59% and provides concentrated exposure, with its top 15 holdings recently representing over 90% of the portfolio by weight. This passive structure ensures that the fund remains strictly aligned with the underlying index’s definition of the weight loss market.
OZEM & HRTS: Active Management in Weight Loss ETFs
In contrast to the passive approach of THNR, the Roundhill GLP-1 & Weight Loss ETF (OZEM) utilizes an active management strategy. This could allow the fund to pivot weightings based on real-time data from clinical trials and FDA regulatory updates. While THNR is rebalanced on a set schedule, OZEM’s managers may potentially adjust exposure depending on manufacturing capacity and emerging competition.
However, as of January 9, OZEM and THNR have the same top two holdings – Novo Nordisk and Eli Lilly – and a 61% portfolio overlap by weight, suggesting a simplified passive approach may be suitable in the weight loss ETFs landscape.
For advisors seeking a broader medical perspective, the Tema Heart & Health ETF (HRTS) positions the weight loss trend within a larger cardiology and metabolic diseases framework. Managed by Dr. David Song, HRTS looks beyond obesity to include treatments for diabetes and cardiovascular disease.
HRTS typically holds approximately 45 companies, offering a more diversified portfolio than the pure-play approach of THNR or OZEM. However, this ETF’s specialized active management carries a higher net expense ratio of 0.75% and is lagging the other two weight loss ETFs in year-to-date performance as of January 9.
Weight Loss ETFs Comparison for Portfolio Construction
THNR provides a transparent, index-based strategy for capturing the growth of the obesity drug market with lower administrative costs. Meanwhile, OZEM offers active agility, and HRTS provides exposure to the comorbid conditions associated with metabolic health.
Weight loss ETFs present a compelling opportunity for investors to capitalize on the long-term thematic growth in the obesity drug market, potentially serving as a high-return satellite position within investment portfolios.
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VettaFi LLC (“VettaFi”) is the index provider for THNR, for which it receives an index licensing fee. However, THNR is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of THNR.`
