REX files for Peptides ETF to track VettaFi Index

REX Shares filed with regulators on July 27 to create the REX Peptides ETF, which would track the VettaFi Peptides Index and invest in companies across the peptide value chain, including drug developers, manufacturers, oral delivery specialists and cosmeceutical firms.

The proposed index covers four segments: peptide drug developers, infrastructure and contract development and manufacturing organizations (CDMOs), oral delivery technology companies, and firms making peptide-based cosmeceuticals. To qualify for the index, companies must have at least $100 million in market capitalization and a three-month average daily trading volume of $1 million or more.

Constituents are divided into two tranches. The core tranche targets firms with 50% or more of revenue tied to the four segments or with at least half of annual R&D spending or clinical pipeline focused on peptides. The diversified tranche includes companies with 10% to 49% revenue or R&D exposure to peptides, or firms with under 10% peptide revenue that rank among the top three global providers in one of the four segments. At each quarterly rebalance, holdings are weighted by free-float market capitalization, with 80% of index weight allocated to the core tranche and 20% to the diversified tranche.

The index sets concentration limits to reduce single-stock risk: individual core-tranche constituents are capped at 12% weight and diversified constituents at 5%. The total weight of holdings above 5% cannot exceed 45%; any excess weight is redistributed pro rata to lower-weight constituents at rebalance.

Investor demand for peptides has risen with wider use of GLP-1 weight-loss treatments. A Gallup survey cited in the filing shows U.S. adult use of GLP-1 therapies increased from 3% in 2024 to 11% in 2026. Morgan Stanley research cited in the filing estimates global GLP-1 market revenue could grow from about $79 billion in 2025 to roughly $190 billion by 2035. The filing notes reported supply shortages and multi-billion-dollar investments by pharmaceutical companies and CDMOs to expand peptide manufacturing and delivery capacity.

The filing also references regulatory developments. An FDA advisory committee meeting on July 23–24 voted to recommend adding six of seven non-FDA-approved wellness peptides to the federal list of substances that licensed 503A compounding pharmacies can prepare. The committee’s recommendation is non-binding; if adopted, it would create a legal pathway for certain compounded wellness peptides that previously circulated in an unregulated online market.

REX’s filing notes the firm’s prior thematic ETF launches, including the REX Drone ETF (DRNZ), which tracks a VettaFi drone index and had roughly $110.6 million in assets under management. The filing does not specify an expense ratio or a planned ticker. VettaFi LLC is listed as the index provider for the VettaFi Peptides Index. The proposal will proceed through the standard regulatory review process before the ETF can begin trading.