Weight loss pills and treatments have exploded in popularity since GLP-1 drugs hit the market. From Ozempic to Wegovy, those pills have changed the lives of countless people around the world. They’ve also paid dividends to the companies that produce them. Investors can get exposure to their rising popularity via the weight loss ETF THNR, which recently saw its index reweighted.
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THNR, the Amplify Weight Loss Drug & Treatment ETF, charges a 59 basis point fee to track the VettaFi Weight Loss Drug & Treatment Index (THINR). The ETF’s index takes a market cap-weighted approach to developed market companies that develop GLP-1 products.
GLP-1 Weight Loss ETF THNR Rebalances
The index includes drug manufacturers with GLP-1 drugs (either launched or in FDA clinical trials) and companies enabling R&D and outsourced development. Those categories comprise 70% and 30%, respectively. Together, that has helped the weight loss ETF return 4.7% over the last year.
As of March 11, the fund’s index made some notable changes. The ETF’s index, THINR, added one firm to its list and dropped another. It picked up Structure Therapeutics Inc (GPCR) and dropped Hims & Hers Health Inc (HIMS). The former, GPCR, enters at a 3% weight in the reformatted index.
The index saw nine of its holdings increase in weight, while eight dropped. Notable names among the risers include AstraZeneca PLC (AZN) which moved from a 5.3% weight to a 7.1% weight after rebalancing. Others that rose in weight within the THINR index include Novo Nordisk A/S (NVO) and Arrowhead Pharmaceuticals Inc (ARWR).
Notably, among decreasing weights in the index, Eli Lilly & Co. (LLY) dropped from 12.4% to 10.5% in the rebalance. Other notable stocks dropping in the index include Amgen, Inc. (AMGN) and Chugai Pharmaceutical Co Ltd. (4519).
Looking ahead, those moves could help the fund in its efforts to offer discrete, targeted exposure to weight loss. For those wanting a weight loss ETF as people increasingly try GLP-1s, THNR may appeal.
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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.
