Eli Lilly Value Chain ETF ranks No. 1 for six-month returns among healthcare passive ETFs

[Financial News] Driven by growth in the global obesity-drug market, an exchange-traded fund (ETF) investing in Eli Lilly and Company and related supply-chain companies posted the highest six-month return among healthcare passive ETFs.
Korea Investment Management Co., Ltd. said on the 27th that the ACE Eli Lilly Value Chain ETF ranked first among 22 healthcare passive ETFs listed in Korea, posting a return of 11.79% over the most recent six months as of the 26th.
According to Koscom Corporation's ETF CHECK, 36 healthcare ETFs are listed in Korea, 22 of which are passive. The average return for all healthcare ETFs over the same period was -16.60%. The ACE Eli Lilly Value Chain ETF posted a return of 17.85% over the most recent year.
The fund invests in around 15 companies in the production value chain, including those involved in raw-material manufacturing, finished-product packaging and drug-delivery devices, with global pharmaceutical company Eli Lilly and Company at its center. As of the 26th, Eli Lilly and Company's weighting was the highest at 26.19%, followed by Thermo Fisher Scientific at 10.39%, Lonza Group at 9.85%, United Therapeutics at 7.67% and Amphastar Pharmaceuticals at 7.58%, among others.
With demand continuing for GLP-1 drugs for obesity and diabetes, such as Mounjaro and Zepbound, expectations for earnings growth are also rising for peptide active pharmaceutical ingredient (API) suppliers and contract development and manufacturing organizations (CDMOs), as well as for Eli Lilly and Company.
Buoyed by rising sales of injectable treatments, Eli Lilly and Company has raised its full-year revenue guidance for this year from $82 billion–$85 billion to $85 billion–$87 billion.
“As global demand for obesity treatments increases, supply-chain benefits from Eli Lilly and Company's expansion of large-scale capital expenditures are translating into results for value-chain companies,” said Nam Yong-su, head of the ETF division at Korea Investment Management Co., Ltd. “Global capital flows into the healthcare sector are also supporting share-price gains among related companies.” 

[email protected] Bae Han-geul Reporter