Exchange Traded Concepts and Eve Capital have announced that the Wearable Technologies ETF (WEAR US) will home in on the augmented and virtual reality markets within wearable technology by adopting an new index.

The new index tracks the augmented reality and virtual reality subsectors of the wearable technologies universe.

The new index – the EQM Tactile AR/VR Virtual Technology Index – tracks a subset of the current underlying EQM Wearable Technology Index.

While the current index focuses on companies that are engaged in the manufacture and sale of wearable devices, the new index targets firms expected to benefit from the increased adoption of augmented reality and virtual reality (AR/VR) technologies.

The new index maintains the global focus of its predecessor, including both developed and emerging markets.

Companies included in the index can be found along the entire AR/VR supply chain. This includes those that manufacture electronic components used to construct AR/VR hardware, develop the software that utilize the hardware, develop content for use on AR/VR hardware, and manage content distribution platforms or deploy AR/VR hardware/software as part of a customer solution or offering.

“Wearable technology is something that we still believe in. We just happen to believe that the augmented and virtual technology subset of wearables is the most exciting and could have a larger market impact going forward,” said Bryce Tillery, managing partner of Eve Capital. “We are also pleased to be working with EQM Indexes, our index partner, and Tactile Analytics, the research firm covering this fast growing asset class.”

To reflect the change in investment strategy, the ETF will change its name to the Tactile Analytics AR/VR Virtual Technologies Fund. It will remain listed on Cboe BZX Exchange but its ticker will be changed to ARVR US.

All changes are due to take effect as of the close of business on 9 July 2018. WEAR has around $2 million in assets and comes with an expense ratio of 0.85%.