Tema ETFs has been capitalizing on the risk appetite for weight loss stocks.

It is behind the GLP-1, Obesity & Cardiometabolic ETF (HRTS), which is up 26% since its inception last November.

The firm’s founder and CEO Maurits Pot thinks the winning weight loss trade isn’t based on just hype.

“The companies we track and the companies we invest in are looking not just at a weight loss approach, but also other approaches,” Pot told CNBC’s “ETF Edge” on Monday. “We could see a world where the majority of the world’s population takes a GLP-1, not just for weight loss, but for other diseases.”

His top holdings include Mounjaro manufacturer Eli Lilly and Ozempic and Wegovy maker Novo Nordisk. Eli Lilly is up 57% so far this year, while Novo Nordisk is up 38%.

Plus, Pot does not expect the price tag for GLP-1s to discourage new patients. He thinks they will come down significantly in the next two to three years.

“We could see drug pricing come down from $12,000 to maybe $6,000 a year, so maybe $500 a month,” said Pot, who points out insurance coverage often makes the treatments more affordable to patients.