Tema Obesity & Cardiometabolic ETF
Price
$33.25
YTD
—
Expense
0.75%
Yield
—
Best Weight Loss & Obesity Drug ETFs for 2026
Discover the best ETFs for investing in the weight loss and GLP-1 obesity drug revolution. Compare funds holding Novo Nordisk, Eli Lilly, and biotech innovators.
Complete Guide to Weight Loss & GLP-1 Drug ETFs in 2026
The GLP-1 drug revolution represents the largest new pharmaceutical market in decades, with analysts projecting the obesity treatment market to reach $150 billion by 2030. Novo Nordisk's Ozempic/Wegovy and Eli Lilly's Mounjaro/Zepbound have transformed the treatment of obesity and diabetes, creating massive investment opportunities across the healthcare sector.
The GLP-1 Revolution Explained
GLP-1 receptor agonists (glucagon-like peptide-1) were originally developed for type 2 diabetes but have shown remarkable effectiveness for weight loss, with patients losing 15-25% of body weight. The drugs work by mimicking natural satiety hormones, reducing appetite and slowing gastric emptying. Clinical trials have also shown cardiovascular benefits, liver disease improvement, and potential neuroprotective effects.
Market Size and Growth
The total addressable market is enormous: over 40% of US adults are classified as obese, and approximately 650 million people worldwide. Current treatment penetration is less than 3%, suggesting decades of growth ahead as supply constraints ease and insurance coverage expands. Goldman Sachs projects the anti-obesity drug market could reach $100 billion by 2030.
ETFs with GLP-1 Exposure
XLV (Health Care Select Sector SPDR): The broadest healthcare ETF, with Eli Lilly as the top holding. Provides diversified healthcare exposure with significant GLP-1 drug company weighting.
XBI (SPDR S&P Biotech ETF): Equal-weighted biotech exposure including smaller companies developing next-generation obesity treatments.
EDEN (iShares MSCI Denmark ETF): Heavy Novo Nordisk concentration (35%+) makes this essentially a Novo Nordisk ETF. For investors wanting concentrated Ozempic/Wegovy exposure.
Second-Wave Innovators
Beyond Novo Nordisk and Eli Lilly, dozens of companies are developing next-generation obesity treatments including oral GLP-1 pills (more convenient than injections), combination therapies targeting multiple pathways, and muscle-sparing weight loss drugs. Companies like Amgen, Viking Therapeutics, and Structure Therapeutics are among the most watched.
Ripple Effects Across Industries
The obesity drug revolution has implications far beyond pharma. Companies that benefit include medical device makers (fewer bariatric surgeries but more diagnostic demand), healthcare providers, and pharmacies. Companies that may be negatively impacted include food companies, restaurant chains, and diabetes device makers. Smart investors should consider both the winners and losers.
🏆 Winner — #1 pick
Frequently asked questions
What is a GLP-1 drug ETF?
A GLP-1 drug ETF invests in pharmaceutical and biotech companies developing or selling GLP-1 receptor agonists for obesity and diabetes treatment.
What does GLP-1 mean?
GLP-1 stands for glucagon-like peptide-1, a hormone that regulates appetite, insulin secretion, and gastric emptying.
How do GLP-1 drugs aid in weight loss?
GLP-1 drugs mimic natural satiety hormones, reducing appetite and slowing gastric emptying, leading to 15-25% average body weight loss.
Which companies lead the GLP-1 drug revolution?
Novo Nordisk (Ozempic/Wegovy) and Eli Lilly (Mounjaro/Zepbound) are the two largest companies driving the market.
What is the total addressable market for GLP-1 drugs?
The global obesity treatment market is projected to reach $150 billion by 2030, with over 650 million adults worldwide potentially eligible.
Which ETFs provide GLP-1 exposure?
Top ETFs include SLIM (Tema Obesity & Cardiometabolic ETF), XLV (Health Care Select Sector SPDR), XBI (SPDR S&P Biotech ETF), and EDEN (iShares MSCI Denmark ETF).
What makes SLIM ETF unique?
SLIM focuses specifically on obesity and cardiometabolic treatments, including heavy exposure to Novo Nordisk and Eli Lilly.
Can biotech ETFs like XBI give GLP-1 exposure?
Yes, XBI holds smaller biotech companies developing next-generation obesity treatments, offering broader but less concentrated GLP-1 exposure.
Why is EDEN ETF essentially a Novo Nordisk play?
EDEN is a Denmark-focused ETF, and Novo Nordisk makes up over 35% of the fund, making it effectively a concentrated Ozempic/Wegovy investment.
What are second-wave obesity treatment innovators?
Companies developing oral GLP-1 pills, combination therapies, and muscle-sparing weight loss drugs, such as Amgen, Viking Therapeutics, and Structure Therapeutics.
How do GLP-1 drugs impact the broader healthcare industry?
They reduce bariatric surgeries but increase diagnostic and pharmacy demand, benefiting medical device makers, healthcare providers, and pharmacies.
Are there companies negatively impacted by GLP-1 adoption?
Yes, some food companies, restaurant chains, and diabetes device makers may see reduced demand.
Is GLP-1 ETF investing high-risk?
Yes, the sector is volatile due to regulatory risk, competition, pricing pressure, and clinical trial outcomes.
What is the expense ratio of SLIM ETF?
SLIM has an expense ratio of 0.75%.
What is the price of SLIM ETF in 2026?
SLIM is priced at $33.25.
Do GLP-1 ETFs pay dividends?
Most GLP-1 ETFs, including SLIM, focus on growth and generally do not pay significant dividends.
How can investors gain exposure to GLP-1 drugs indirectly?
Investors can buy broad healthcare ETFs like XLV or biotech ETFs like XBI that hold major GLP-1 drug companies.
Why is the GLP-1 market expected to grow for decades?
Current treatment penetration is less than 3%, and obesity prevalence remains high, suggesting long-term demand growth.
Can GLP-1 ETFs benefit from insurance coverage expansion?
Yes, wider insurance coverage and regulatory approvals increase accessibility, expanding the potential market and revenues.
Who should consider investing in GLP-1 ETFs?
Investors seeking growth exposure to obesity treatments, diabetes care, and cardiometabolic innovation with tolerance for biotech volatility should consider GLP-1 ETFs.