The ETF for weight loss drug bets heavily on two of the industry's top players.

An exchange-traded fund provider is placing a bet on the long-term success of GLP-1 weight loss medications.

The GLP-1 & Weight Loss ETF (OZEM) by Roundhill Investments, which was launched last week, brings together leaders and players in the development of new treatments for weight loss and diabetes. CEO Dave Mazza stated that his company is taking advantage of the explosive growth potential in the industry.

"Identifying overweight companies in the pharmaceutical industry and managing them actively is a powerful tool," Mazza said on CNBC's "ETF Edge" last Monday.

Eli Lilly has experienced a 90% increase in value over the past year, while Novo Nordisk has gained 68%, as of Friday's market close. Despite concerns that investors may have missed out on the rally, Mazza believes that the weight loss drug industry is still in its early stages.

"The marketplace offers ample space for expansion as new companies enter, including those with stronger medications or unnecessary injectables."

He also sees GLP-1 drugmakers following a similar trajectory to AI-linked stocks.

""It's a bit like thinking about Eli Lilly and Novo Nordisk pivoting to focus on diabetes and weight loss drugs a few years ago, which allowed them to get in market and produce remarkable results," Mazza said."

The GLP-1 & Weight Loss ETF of Roundhill experienced a nearly 2% decline in value following its launch on Tuesday.