Obesity treatment has emerged as a standout performer in the global pharmaceutical and biotechnology sectors in recent years, particularly with the rising popularity of GLP-1 class obesity drugs. (Image courtesy of Pixabay)
SEOUL, Feb. 9 (Korea Bizwire) –The Korea Exchange announced on February 8 that it will list Samsung Asset Management’s KODEX Global Obesity Treatment TOP2 Plus Exchange Traded Fund (ETF) on the stock market on February 14.
This fund marks the first obesity treatment-themed product in South Korea, investing in 10 global companies related to obesity treatment in regions including the United States and Europe.
The focus on obesity treatment has gained significant attention in the global pharmaceutical and biotech sector, especially following the prominence of GLP-1 hormone-based obesity treatments, which were originally developed for diabetes care, showing remarkable growth last year.
GLP-1s, hormones naturally released when consuming food, have gained traction not only in treating diabetes but also in aiding weight management. These drugs work by curbing appetite and slowing intestinal movements, resulting in reduced blood sugar levels and weight loss.
The ETF will heavily invest in the two leading companies in the industry, Eli Lilly and Novo Nordisk, allocating 25% of its investments to each, while the remaining eight companies will each hold an equal weight of 6.25%.
The selection of companies for investment is based on those that have obesity treatment drugs or weight loss medications approved by the U.S. Food and Drug Administration (FDA) or the European Medicines Agency (EMA), or those with ongoing clinical trials.
The price per share of the ETF is set at 10,000 KRW. Investors should be aware that ETFs can experience discrepancies between index performance and operational performance due to factors such as management fees and changes in the composition of holdings.
Additionally, ETFs exposed to foreign exchange may face risks associated with currency fluctuations.
Ashley Song (ashley@koreabizwire.com)
