I recommend buying the Roundhill GLP-1 & Weight Loss ETF (OZEM) for strategic exposure to the weight loss drug sector. OZEM offers diversified access to leading GLP-1 innovators like Novo Nordisk and Eli Lilly, with a 34x earnings multiple versus Eli Lilly's 45x. AI-driven drug discovery, highlighted by the Nvidia-Eli Lilly partnership, is a major catalyst for sector growth and future upside.
After a lackluster first half of 2025, healthcare stocks staged a comeback, posting the best performance among the 11 S&P 500 sectors over the past six months.
Two new weight-loss exchange-traded funds (ETFs) launched in May have yet to whet investors' appetite, possibly due to their expensive fees and concentrated bets.
While Novo Nordisk and Eli Lilly have soared in the past year, Roundhill Investments sees bigger gains ahead for the GLP-1 drugmakers.
Global obesity rates have nearly tripled since 1975, per WHO and Goldman Sachs. The growing usage of GLP-1 drugs in weight management now makes the industry a thriving one.