Defiance ETFs has launched its Defiance Future Tech ETF (NYSE: AUGR), which is designed for investors seeking to capitalise on the growing opportunities in augmented reality and virtual reality (AR/VR) technology, a disruptive tech category that is already having a meaningful impact on a wide range of industries.
“The AR/VR space has extended far beyond its roots in gaming to applications in healthcare, retail, manufacturing, entertainment and more,” says Matthew Bielski (pictured), founder and CEO of Defiance ETFs. “But as the category matured and expanded, investors lacked options for adding targeted exposure to AR/VR leaders to their portfolios. With AUGR that problem has been solved, and access to the category is now available in a highly liquid ETF wrapper.”
The firm writes that augmented reality—digital images superimposed over the real world—is primed to drive industry growth. In fact, companies are already putting the technology to use in a variety of ways from AR-enabled real estate tours to training workers in manufacturing.
“In the healthcare sector alone, there have already been cases where surgeons used augmented reality technology to assist in heart transplant operations, and new AR approaches are helping doctors manage sensory overload issues for patients, such as children with autism, during medical procedures,” says Bielski. “These are just a few of the real-world applications of this technology.”
The firm writes that AUGR offers a liquid and transparent way to invest in companies developing and commercialising the AR/VR technology from application developers to manufacturers and distributors of the necessary hardware.
The underlying index, the BlueStar Augmented and Virtual Reality Index (BAUGR), is global in nature and includes approximately 60 stocks across all market capitalisations. Current country allocations include the United States, France, Japan and Korea. The index is equal weighted, offering investors more targeted exposure, including to smaller companies with higher growth potential.
AUGR is the first ETF from Defiance ETFs, which specialises in portfolios that highlight disruptive technologies. Bielski, who was previously Senior Vice President at Direxion ETFs, has experience in ETFs and asset allocation.
“We founded Defiance ETFs with the vision that more investors should be able to tap into the growth stories of the truly disruptive technologies that we believe will permanently change our lives,” says Bielski. “Our ETFs go beyond the trend-of-the-month, and provide targeted exposures that act as important complements to existing core tech allocations. We’re thrilled to be bringing our first ETF to market and we’re equally excited to be providing investors with access to AR/VR growth.”