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.