(Bloomberg) — A distinct segment issuer is launching a biotechnology exchange-traded fund whose key holdings embrace companies benefiting from the hype round weight-loss medicine.
The Tema Cardiovascular and Metabolic ETF (ticker HRTS) tracks corporations concerned within the remedy of cardio-metabolic ailments — a time period that hyperlinks cardiovascular ailments, weight problems and diabetes. The ETF, which has a novel investing mandate on the earth of thematic allocations, fees a 0.75% administration charge.
The actively managed fund has 20 to 25 core positions, together with Eli Lilly & Co. and Novo Nordisk A/S, in addition to Arrowhead Prescription drugs Inc. and Bridgebio Pharma Inc., stated Maurits Pot, founder and chief govt officer of Tema ETFs.
Its launch coincides with a interval of heightened consciousness surrounding a brand new technology of weight problems medicine. The listing consists of Novo’s Ozempic — initially used to deal with diabetes — and Wegovy, in addition to Eli Lilly’s diabetes drug Mounjaro and Zepbound, which lately acquired approval to deal with weight problems. Novo’s American depositary receipts are up greater than 50% this 12 months whereas Eli Lilly’s shares rallied greater than 60%.
Learn Extra:
‘I Don’t Suppose About Meals as A lot’: Ozempic Rocks Thanksgiving
A TikTok Development Offered Out Ozempic, Leaving Diabetics Dizzy, Scared
Pot says HRTS is trying to put money into structural developments moderately than experience momentum trades.
“We don’t concentrate on what’s sizzling in the present day,” he stated in an interview.
Whereas HRTS already has well-established rivals just like the $6.4 billion iShares Biotechnology ETF (IBB) and the $6 billion SPDR S&P Biotech ETF (XBI), Pot stated Tema’s ground-up, research-driven method units it aside. The brand new fund’s portfolio supervisor is David Tune, a physician who has over 25 years of life-sciences investing.
“I like that they’re utilizing a specialist for the respective theme,” stated Athanasios Psarofagis, Bloomberg Intelligence ETF analyst, referring to the portfolio supervisor. “It’s a really fascinating play as a result of they’re taking thematics as much as one stage increased since its extra particular in comparison with different thematic funds.”
General, traders have yanked $4.7 billion from thematic ETFs to this point this 12 months, in contrast with $2.4 billion final 12 months, based on Bloomberg Intelligence information. Such funds had boomed in the course of the pandemic, garnering $46 billion in 2020 and $49 billion in 2021, the information confirmed.
HRTS is the second fund in Tema’s life-sciences lineup. The New-York primarily based agency, which launched in 2023 and has round $40 million in property below administration, plans to debut a neurology-focused ETF — the third fund in its life-sciences roster — early subsequent 12 months, Pot stated.
