On Tuesday, Amplify entered the weight loss ETF space with the launch of the Amplify Weight Loss Drug & Treatment ETF (THNR ).
THNR operates with a net expense ratio of 0.59%. Additionally, the fund aims to provide investors with results similar to the performance of the VettaFi Weight Loss Drug & Treatment Index (THINR).
THINR is float-adjusted and market cap weighted. Components of the index are companies across the globe who either manufacturers or enablers of the GLP-1 pharmaceutical industry.
Within the industry, the index holds 70% of its weight within manufacturers and about 30% to enablers. In order to bolster exposure and balance, each segment has a weighted float-adjusted market cap.
Weight Loss Demand
Through being benchmarked to THINR, the fund provides access to global players in the GLP-1 business. Last year, Goldman Sachs predicted that the GLP-1 drug market could grow to $100 billion by 2023.
This comes as pharmaceutical companies ramp up production to meet weight loss demands. The World Health Organization noted that in 2022, over 1 billion people across the globe were living with obesity.
Most of the time, the fund will utilize a replication strategy in order to better track the index. Still, THNR may opt to instead apply a representative sampling strategy at times, should the fund managers deem it in the best interest of the fund.
“Weight loss related investing has been one of the strong trends in 2024 as there’s a tremendous market opportunity over the next decade. This new index-based ETF will provide a diversified approach to help investors take advantage,” VettaFi Head of Research Todd Rosenbluth said.
See More: Fighting Obesity Using ETFs
THNR is the latest ETF to join the growing library of Amplify funds. Meanwhile, Amplify’s largest fund, the Amplify CWP Enhanced Dividend Income ETF (DIVO), has over $3.2 billion in assets under management.
vettafi.com is owned by VettaFi LLC (“VettaFi”). 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.
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