Wearable Tech ETF Honing Focus

July 03, 2018

Exchange Traded Concepts and Eve Capital have announced that the WEAR ETF (WEAR) will narrow its focus to target companies with augmented-reality- and virtual-reality-focused operations. In a press release, the firms noted that the area is a subset of the broader wearable technology space.

The fund, in its current incarnation, covers companies producing all kinds of wearable technology and related components.

Starting July 10, the fund will change its name to the Tactile Analytics AR/VR Virtual Technology ETF and its ticker to ARVR. The fund’s new index will be the EQM Tactile AR/VR Virtual Technology Index, switched from the EQM Wearables Index.

WEAR has only about $2 million in assets under management after launching in December 2016, so it’s not surprising that its issuer and sponsor would want to make some changes.

Methodology

The revamped fund’s index will target companies from developed and emerging markets that generate at least half of their revenues from the AR/VR space, such as through the supply chain serving that space as well as the firms involved in hardware, software and imaging for the space and other companies that directly use the content, the revised prospectus says.

Eligible companies must meet size, liquidity and float requirements. Selected companies are equally weighted within the index, which is rebalanced quarterly—but more frequently if needed—according to the document.

It appears that the fund will maintain its 0.85% expense ratio, which is definitely on the high side for an equity fund. However, the prospectus leaves the “total” blank for that, so it could change.

Contact Heather Bell at [email protected]

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