The Billion-Dollar Obesity Crisis: Why Weight Loss ETFs Are Gaining Traction Among Savvy Investors

The pharmaceutical industry is witnessing a seismic shift. With obesity affecting over 1 billion people globally and linked to serious health complications like diabetes, heart disease, and stroke, the weight loss treatment sector has become impossible to ignore. Analysts project this market could balloon to $200 billion by 2031—that’s a level of growth potential that’s attracting serious institutional attention.

The real catalyst? A new generation of oral GLP-1 medications are proving they can match—or even outperform—injectable options, while potentially offering fewer side effects and simpler administration methods. This breakthrough is opening doors for investors seeking exposure to one of healthcare’s hottest trends.

The Oral Revolution: When Pills Beat Injections

Recent clinical trial data has turned heads across the industry. Roche’s Phase 1 results showed a 6.1% weight reduction in just four weeks, while Novo Nordisk’s oral candidate delivered a stunning 13.1% weight loss after 12 weeks—significantly outperforming its own injectable flagship, Wegovy, which achieved only 6% loss in the same timeframe.

Even smaller biotech players are making waves. Terns Pharmaceuticals reported 4.9% weight loss in early trials, with plans to advance to Phase 2 studies next year. What’s remarkable isn’t just the efficacy—it’s the momentum. Analysts at Morningstar and Pitchbook estimate 16 new weight loss drugs will hit the market by 2029.

The scale of opportunity is staggering. Spherical Insights forecasts the global weight loss supplement market will expand from $28.65 billion in 2023 to $101.83 billion by 2033, representing a compound annual growth rate of 13.5%. That kind of trajectory typically translates into compelling investment returns.

How GLP-1 Works: The Science Behind the Surge

GLP-1 medications function by mimicking glucagon-like peptide-1, a naturally occurring hormone released during digestion. Originally developed for diabetes management, these drugs were later discovered to suppress appetite and trigger weight loss while simultaneously managing blood sugar. The health benefits extend beyond the scale: recent research indicates GLP-1 therapies reduce cardiovascular mortality risk by approximately 20% and lower heart attack and stroke incidence by similar margins. With 10-20% body weight reductions documented across studies, these drugs represent a genuine therapeutic breakthrough.

Three Weight Loss ETFs Worth Watching

For investors seeking to capitalize on this megatrend, three funds provide direct exposure:

OZEM: Roundhill GLP-1 & Weight Loss ETF Launched in late May as the world’s first actively managed GLP-1 fund, OZEM holds 29 pharmaceutical and healthcare companies positioned at the forefront of weight loss innovation. The portfolio shows meaningful concentration in top holdings. Since inception, the fund has accumulated $47.1 million in assets and charges 0.59% annually. Daily volume averages 34,000 shares, providing solid liquidity for most retail investors.

THNR: Amplify Weight Loss Drug & Treatment ETF This fund provides global exposure to pharmaceutical manufacturers of GLP-1 agonists and supporting companies within the weight loss ecosystem. Tracking the VettaFi Weight Loss Drug & Treatment Index, THNR maintains 27 holdings with concentrated weighting toward its largest positions. The fund carries a 0.59% annual expense ratio and manages approximately $4.4 million in assets. Daily trading volume runs around 3,000 shares.

HRTS: GLP-1, Obesity & Cardiometabolic ETF The broadest offering in the category, HRTS targets companies combating obesity and related metabolic diseases. Its 45-stock basket provides more diversification than peers, with moderate concentration among top performers. The fund has grown to $88.6 million in AUM and charges a 0.75% annual fee. Average daily volume reaches 25,000 shares, delivering robust trading liquidity.

The Bottom Line

The convergence of massive unmet medical need, breakthrough clinical efficacy, and massive projected market growth creates a compelling investment thesis. Whether through OZEM’s focused active approach, THNR’s global exposure, or HRTS’s diversified basket, weight loss ETFs offer investors a systematic way to participate in what could be one of the decade’s defining healthcare trends.