KB Asset Management Launches 'KBSTAR Global Obesity Industry TOP2+ ETF'

KB Asset Management has launched an exchange-traded fund (ETF) that invests in the obesity treatment market. The ‘KBSTAR Global Obesity Industry TOP2+ ETF,’ listed on the 27th, invests up to 56% in Eli Lilly (LLY) and Novo Nordisk (NVO), the leading companies in the obesity treatment market.

The obesity treatment market, which had not received much attention due to various side effects, has rapidly grown since Novo Nordisk launched the second-generation GLP-1 class obesity treatment in 2021, significantly improving safety, efficacy, and convenience compared to existing treatments.

With Eli Lilly introducing third-generation treatments, the obesity treatment market is shifting from a specialty pharmaceutical market to a mass market. The number of obese patients worldwide has now exceeded 1 billion, and the global obesity treatment market is growing at an annual rate of over 30%. It is expected to exceed 100 trillion KRW by 2030.

Eli Lilly and Novo Nordisk, which dominate the market, are leading the development of GLP-1 class treatments and are expected to occupy more than 80% of the market in the future.

The ‘KBSTAR Global Obesity Industry TOP2+ ETF’ invests not only in leading obesity treatment companies such as Eli Lilly and Novo Nordisk but also in five major pharmaceutical companies showing significant achievements in new drug development related to obesity treatments, as well as top companies in obesity-related exercise and behavioral therapy sales, represented by Lululemon.

The strategy is to enhance profitability by benefiting from the growth of the obesity treatment market through Eli Lilly and Novo Nordisk, which have overwhelming competitiveness among peer companies, while adding stability by investing in high-quality health management companies like Lululemon.

Lee Su-jin, head of ETF products at KB Asset Management, explained, "GLP-1 class obesity treatments, regarded as game changers in the obesity industry, still have low penetration rates even in the U.S. market," adding, "There are many countries where these treatments have not yet been launched, so there is significant potential for business expansion." He continued, "By utilizing the KBSTAR Global Obesity Industry TOP2+ ETF, investors can focus on leading stocks in the obesity industry and fully enjoy the growth of the related market."

This content was produced with the assistance of AI translation services.