(c)iStock.com/Terry J Alcorn

IDC estimates that the global wearable device market is anticipated to see 44% year on year increase in shipments to 111.1 million units in 2016. Additionally, the segment is expected to witness a five year CAGR of 28%, resulting in 214.6 million units by 2019. As a result, EQM Indexes is launching an index, named WEARXT, to monitor the wearables segment.

WEARXT monitors the combined performance of around 45 to 55 global stocks that generate revenue from wearable technology products and/or components. Well-known companies in this lot are Fitbit, GoPro, Garmin, and Apple. Additionally, the Index also tracks global companies involved in wearable technology including Adidas (Germany), Seiko (Japan) and GN Store Nord (Denmark).

WEARXT only tracks companies that generate revenue from either the sale of wearable devices or their underlying components like sensors, semis, and displays. Core wearable holdings, which gain a larger share of their revenue from wearable devices, receive a larger weightage while non-core and/or component manufacturers gain a smaller weightage. The index is a modified equal-weighted index that is rebalanced and reconstituted on a semi-annual basis in June and December. Price and return data are independently calculated and published by Solactive.

Though wearable devices such as smart watches and activity trackers dominate the consumer category, the applications for wearables continues to expand for business, healthcare, government, and military. Forrester Research estimates that 76% of global tech and business leaders have wearables on their agenda as a tool to make use of data while boosting customer interaction.

 

 

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