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NTHM’s Index Rebalance Puts Thematic Rotation to Work

BY | ETF Database
4:26 am ET 09/25/26 | 15 VIEWS
The latest rebalance of VettaFi’s Thematic Rotation Quality Momentum Screened Index (TQRMS), tracked by the NBI Thematic Rotation ETF (NTHM:TSX), reshapes the portfolio around a new set of themes. GLP-1 weight loss drug manufacturers and midstream energy join the index, while battery technology & storage and software-as-a-service (SaaS) exit.Key Takeaways Theme changes: The NTHM rebalance added GLP-1 weight loss drug manufacturers, representing 14.41% across 18 holdings, and midstream energy, representing 16.03% across 22 holdings. Battery technology & storage and software-as-a-service (SaaS) were removed. Direct stock ownership: NTHM holds individual common stocks directly, including Meta Platforms, Microsoft, Eli Lilly, and ONEOK, across seven distinct thematic areas. Related U.S.-listed ETFs: Five of NTHM’s themes have related U.S.-listed ETF strategies: THNR, GAMR, ROBO, BATT and NDIV. GLP-1 Weight Loss Drugs: The Obesity Treatment ThemeThe GLP-1 weight loss drug manufacturers theme now represents 14.41% of NTHM across 18 holdings. Major pharmaceutical companies anchor the allocation. These include Eli Lilly (LLY), Novo Nordisk (NVO), AstraZeneca (AZN), Roche (RHHBY), and Gilead Sciences (GILD). These companies give the theme exposure to drug developers and manufacturers working in obesity treatment and related areas. The category also reflects the broader pharmaceutical ecosystem surrounding weight-management therapies. For more targeted U.S. exposure, the Amplify Weight Loss Drug & Treatment ETF (THNR B-) provides a dedicated approach to the weight-loss drug and treatment theme. THNR tracks the VettaFi Weight Loss Drug & Treatment Index and carries a 0.59% expense ratio. Its methodology focuses on pharmaceutical and biotechnology companies involved in the development and commercialization of weight-loss drugs and related treatments. The two approaches differ in scope. NTHM incorporates the GLP-1 theme into a diversified seven-theme portfolio, while THNR focuses specifically on the weight-loss drug and treatment opportunity. See More: NTHM ETF Rotates Into Midstream Energy & GLP-1 HealthcareMidstream Energy: The Infrastructure Behind Energy MarketsMidstream energy represents 16.03% of NTHM across 22 holdings. It was the other new theme added during the latest rebalance. The theme centers on companies involved in energy infrastructure. Representative holdings include ONEOK (OKE), Williams Companies (WMB), Kinder Morgan (KMI), Enbridge (ENB), and TC Energy (TRP). These businesses operate across areas such as pipelines, storage, transportation and energy processing. Therefore, the theme provides exposure to a different part of the energy value chain than traditional exploration and production companies.E-Sports & Interactive Gaming: A Broadening Digital Entertainment ThemeE-Sports & interactive gaming represents 14.67% of NTHM across 14 stocks. The theme reaches beyond traditional game publishers. It includes companies with major gaming platforms, ecosystems and technology businesses. Representative holdings include Meta Platforms (META), Microsoft (MSFT), Tencent Holdings (TCEHY), Nintendo, and Sony Group (SONY). Gaming increasingly intersects with digital platforms, mobile applications, online services, hardware and other technologies. As a result, the theme is broader than an allocation focused solely on game publishers. For investors seeking more targeted exposure, the Amplify Video Game Leaders ETF (GAMR C) provides access to the global video-game value chain. GAMR covers areas including game development and publishing, mobile and online gaming, gaming hardware, graphics processors and related technologies. The fund therefore offers a dedicated gaming strategy, while NTHM combines gaming exposure with six other themes.Semiconductors: The Building Blocks of Digital TechnologySemiconductors account for 14.32% of NTHM across 40 holdings. The theme encompasses chipmakers and semiconductor equipment companies. Representative holdings include Intel (INTC), AMD (AMD), Arm Holdings (ARM), Micron (MU), and Taiwan Semiconductor Manufacturing Co. (TSM). Semiconductors also connect with several other themes represented in NTHM. Chips support applications across artificial intelligence, advanced computing, robotics and gaming.Robotics & Computation: Automation Across IndustriesRobotic technologies & computation accounts for 14.27% of NTHM across 14 equities. The theme emphasizes automation, precision machinery, optical technologies and other components used in robotics and automated systems. Representative holdings include Harmonic Drive Systems, IPG Photonics (IPGP), SMC Corp., Jenoptik, and Keyence (KYCCF). The opportunity extends beyond companies producing finished robots. It also includes businesses supplying components, machinery and technologies that support industrial automation. For a dedicated U.S.-listed thematic strategy, the ROBO Global Robotics & Automation Index ETF (ROBO B) provides broader exposure to robotics, automation and related technologies. ROBO has a 0.95% expense ratio and now sits at $2.03 billion in assets under management.Battery Minerals & Raw Materials: The Materials Behind ElectrificationBattery minerals & raw materials represents 13.74% of NTHM across 22 companies. The theme focuses on raw materials that support electrification and battery production. Representative holdings include BHP Group (BHP), Freeport-McMoRan (FCX), Grupo Mexico, TDK, and Teck Resources (TECK). This theme differs from battery technology & storage, which was removed during the latest rebalance. Battery minerals & raw materials focuses further upstream on mining and materials. The dropped theme was more directly associated with battery technologies and storage solutions. The related U.S.-listed ETF is the Amplify Lithium & Battery Technology ETF (BATT ). BATT provides exposure across battery technology, battery metals and materials, and electric vehicles. Consequently, BATT represents a broader battery value-chain strategy. NTHM’s current theme has a more specific focus on battery minerals and raw materials.Natural Resources: Broad Exposure to Energy and CommoditiesNatural resources represents 12.56% of NTHM across 43 companies. The allocation includes traditional energy and natural-resource businesses. Representative holdings include Phillips 66 (PSX), Chevron (CVX), Exxon Mobil (XOM), Shell (SHEL), and BP (BP). The theme is broader than midstream energy. Midstream focuses on energy infrastructure and transportation. Natural resources, meanwhile, encompasses a wider group of companies involved in energy and natural-resource activities. For a more targeted U.S.-listed strategy, the Amplify Energy & Natural Resources Covered Call ETF (NDIV ) provides exposure to energy and natural-resource equities while using a covered-call strategy. NDIV tracks the VettaFi Energy and Natural Resources Covered Call Index and carries a 0.59% total expense ratio. However, its covered-call overlay means its structure differs from NTHM’s direct ownership of individual stocks. For more news, information, and analysis, visit the Thematic Investing Content Hub. vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for the ROBO ETFs, for which it receives an index licensing fee. However, the ROBO ETFs are not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of the ROBO ETFs. VettaFi LLC (“VettaFi”) is the index provider for THNR, NDIV, BATT and GAMR for which it receives an index licensing fee. However, THNR, NDIV, BATT and GAMR are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of THNR, NDIV, BATT and GAMR.

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