The wearable technology trend has been legitimized in the world of exchange-traded funds, as the first ETF dedicated to public
companies that make or sell wearable devices debuted Friday. The WEAR
ETF (BATS: WEAR) is the rookie wearable technology ETF.
WEAR tracks the Wearables Index, a benchmark developed by EQM Indexes. Exchange Traded Concepts, LLC (ETC) and Eve Capital
partnered to launch the new ETF.
What's WEAR?
WEAR's index is designed “to track global companies that have a current or future business focus on wearable technology products
and/or components,” according to EQM Indexes. That index “seeks to
track the combined performance of a basket of global stocks that derive revenue from the sale of wearable technology devices
(electronics that can be worn on the body either as an accessory or as part of clothing) for applications such as: Sports and
Fitness, Industrial/Military, Infotainment/Lifestyle, and/or Healthcare and Medical OR derives revenue from the manufacturing of
components used in wearable devices such as semiconductors, sensors, and displays.”
Holdings And Allocations
The index is home 54 stocks, 35 of which are US-based companies. WEAR's equal-weight index allocates 37 percent of its weight to
large caps, 48 percent to mid caps and the remaining 15 percent to smaller stocks.
Not surprisingly, technology stocks account for over half the index's weight with healthcare being the second-largest sector
allocation at 22 percent. Consumer discretionary follows at 19 percent.
Familiar names in WEAR's lineup include Apple Inc. (NASDAQ: AAPL), Fitbit Inc (NYSE: FIT), Garmin Ltd. (NASDAQ: GRMN), Boston Scientific Corporation (NYSE: BSX) and GoPro Inc. (NASDAQ: GPRO).
WEAR charges 0.85 percent per year, or $85 on a $10,000 investment.
“Wearable devices are changing the way people work and play. They are becoming more and more a part of our daily lives," said
Bryce Tillery, CEO of Eve Capital, in a
statement. "We think this trend will continue far into the future as devices become smaller and faster and new technologies
enable more uses for wearable devices.”
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.