Roundhill GLP-1 & Weight Loss ETF

OZEM

Market cap $49.5M

With AI and space dominating many of the market's most popular investment themes, it can be difficult to find differentiated opportunities. Healthcare is often viewed as one of the more defensive sectors, supported by relatively steady demand regardless of the economic environment.

GLP-1 drugs are reshaping healthcare and consumer markets. These ETFs offer targeted exposure to the booming obesity-drug trend.

Eli Lilly and Novo Nordisk are accelerating global obesity pill launches as rising GLP-1 demand puts weight-loss ETFs in focus.

Weight loss drugs are big business, with the GLP-1 receptor agonist market expected to nearly triple in size to $185 billion by 2033, a compound annual growth rate of about 12.4%. Although increasingly a global medical phenomenon, the bulk of the market still exists in the United States, and domestic investors can get in on the action by targeting companies that manufacture these powerful drugs.

For the past two years, GLP-1 medications have been a fixture of consumer trend analysis, discussed by everyone from CNBC to sell-side strategists to management consultants. Real apparel expenditure outperformed total consumer spending by approximately 400 basis points per month on average in 2025, a trend our analysis attributes in part to GLP-1-driven wardrobe replacement. The oral pill launch likely means the population of GLP-1 users will grow materially over the next several years.

Novo Nordisk slides 15% on a cautious 2026 sales outlook, but buybacks, leadership moves and Wegovy expansion put its ETFs in focus.

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.

With the start of 2026, the annual focus on weight loss resolutions presents a timely opportunity for financial advisors to discuss the investment potential of GLP-1 agonists with their clients. This class of drugs has fundamentally altered the healthcare sector's growth projections.

Cannabis, metals, space and health care led ETF gains last week. WEED, CNBS, SIL, UFO, GDXJ, PLTM and OZEM outperformed despite tech weakness.