Diversify With These Health ETFs

The FDA recently approved higher-dose version of Novo Nordisk’s NVO obesity drug Wegovy, further expanding the drug giant’s footprint in the rapidly growing and fiercely competitive weight-loss market. Announced on March 19, 2026, the approval of Wegovy HD (7.2 mg) offers a new, more potent option, building on the company’s previous approvals for the standard 2.4 mg injectable dose in 2021 and a more recent launch of an oral pill formulation.

The latest clearance, which demonstrates an average weight loss of 21% in clinical trials, is likely to boost Novo Nordisk’s competitiveness against Eli Lilly’s LLY Zepbound, another strong contender in the obesity drug market.

This development is thus expected to bolster NVO’s revenue streams and profitability, and by extension, the performance of healthcare exchange-traded funds (ETFs) that hold a significant stake in this Danish pharma giant.

Before diving into the specifics of these ETFs, it is essential to analyze why obesity drugs have recently evolved into a powerhouse revenue stream for pharmaceutical giants and why a diversified ETF strategy may be superior to holding a single pharma giant like NVO alone. Examining this would reveal the true investment potential of the obesity drug market and why drugs like Wegovy are no longer just ‘lifestyle’ products, but rather the cornerstone of a highly profitable, long-term investment theme.

The demand for obesity control drugs in the United States, of late, is being driven by a staggering public health crisis. According to the Centers for Disease Control and Prevention (CDC), obesity prevalence among U.S. adults stands at 40.3%, as of 2023 data.

This chronic, complex disease has created a massive market opportunity, putting weight-loss drugs like Ozempic, Wegovy and Zepbound, commonly known as GLP-1s, at the center stage.

Looking ahead, the usage of GLP-1 drugs in the United States is projected to grow to 30 million users by 2030, as per JP Morgan.

Amid this growth outlook, the expanding U.S. obese patient pool seeking long-term weight management solutions positions leading drugmakers like Novo Nordisk to capture greater market share with more convenient and powerful formulations, highlighting the market’s vast scale and profitability. The latest FDA approval reinforces this momentum.

While Novo Nordisk is a primary beneficiary of the growing obese patient population in America, as described above, direct investment in NVO carries stock-specific risks. A key concern has been the company’s historical supply-chain constraints and manufacturing bottlenecks, which could re-emerge and disproportionately pressure its stock price even amid broader sector growth.

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The obesity drug market remains characterized by fierce competition from other pharma giants like Eli Lilly.

Given this dynamic, gaining exposure through healthcare ETFs can be a more strategic approach. As ETFs provide a built-in buffer against single-stock risk by holding a basket of companies, exposure to healthcare ETFs, with a particular focus on the obesity market as well as those offering exposure to the entire healthcare industry, will allow investors to capitalize on the successes of Novo Nordisk, Eli Lilly, and other key players, without being overly exposed to the operational hurdles any one company might face.

To gain diversified exposure to the “obesity gold rush,” investors may consider the following ETFs:

Roundhill GLP-1 & Weight Loss ETF OZEM

This fund, with net assets worth $53.5 million, offers exposure to 26 companies that are involved in the manufacturing of weight loss drugs, including GLP-1 agonists. Its top three holdings include: LLY (16.18%), NVO (13.31%) and Pfizer PFE (7.40%).

OZEM has surged 23.1% over the past year. The fund charges 59 basis points (bps) as fees.

Amplify Weight Loss Drug & Treatment ETF THNR

This fund, with net assets worth $4 million, offers exposure to 20 companies that are expected to economically benefit from weight loss drug development. Its top three holdings include: NVO (12.23%), LLY (11.79%) and Regeneron Pharmaceuticals (6.65%).

THNR has risen 4.2% over the past year. The fund charges 59 bps as fees.

VanEck Pharmaceutical ETF PPH

This fund, with net assets worth $1.31 billion, offers exposure to 26 companies involved in pharmaceuticals, including pharmaceutical research and development as well a production, marketing and sales of pharmaceuticals. Its top three holdings include: LLY (18%), Novartis (10.95%) and Merck (9.79%). NVO holds the eighth position in this fund, with 4.77% weightage.

PPH has soared 11% over the past year. The fund charges 36 bps as fees.

iShares Global Healthcare ETF IXJ

This fund, with net assets worth $3.60 billion, offers exposure to 113 pharmaceutical, biotechnology, and medical device companies. Its top three holdings include: LLY (9.52%), Johnon & Johnson (7.51%) and AbbVie (4.80%). NVO holds the 17th position in this fund, with 1.58% weightage.

IXJ has risen 0.7% over the past year. The fund charges 40 bps as fees.

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Diversify With These Health ETFs

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