- EQM Indexes LLC launches new Wearables Index
- Wearables are mobile devices that are warn or attached for a number applications
- Wearable industry may offer a global growth opportunity
In a move to bring targeted exposure to an up-and-coming tech segment, EQM Indexes LLC has launched the a new Wearables Index, paving the way for a potential exchange traded fund to track global companies involved in wearables.
EQM Indexes has launched the WEARXT Index, according to a press release.
“We are proud to offer this global index to track the growing wearable technology sector, which by some estimates is expected to grow into a $70 billion industry over the next five years,” Jane Edmondson, co-founder of EQM Indexes, said.
Wearables are mobile devices that are warn or attached for a number applications in sports and fitness, industrial/military, infotainment/lifestyle and healthcare or medical. For example, wearables include activity trackers, smart watches, smart glasses, body cameras, health monitors, virtual reality headsets, hearables and wearable industrial computers.
The new WEARXT Index will follow a combined basket of 45 to 55 global stocks that generate revenue from wearable technology products. The basket of companies include names like Fitbit (NYSE: FIT), GoPro (NasdaqGS: GPRO), Garmin (NasdaqGS: GRMN) and Apple (NasdaqGS: AAPL), along with global companies like Adidas, Seiko, and GN Store Nord.
Companies with more direct exposure to the market have a larger weighting within the index. Meanwhile, companies that have invested in wearables but don’t derive the majority of sales from the technology have a smaller weight target.
The wearable industry may offer a global growth opportunity. According to International Data Corporation, the global wearable device market is projected to hit 111.1 million units shipped in 2016, or 44.4% over 2015. By 2019, shipments could reach 214.6 million units, or a five-year compound annual growth rate of 28%.
The wearable devices are seeing a boom in consumer demand and businesses are taking notice. According to Forrester Research, 76% of the global tech and business leaders have wearables on their agenda as a tool to harness data and enhance customer interaction.