WEARABLES INDEX FAQs2017-09-23T16:03:04+00:00


Here you can find quick answers to some of our most common questions. If you can’t find the answer to your question on this page, contact us and we will help you with any unanswered questions you may have.

The index selection process selects equities for the selection pool that meet the following conditions as determined the Index Provider:

  • Derives revenue from the sale of wearable technology devices 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.
  • In order to be considered for inclusion in the Core Wearable investment pool, significant revenues (as defined by EQM Indexes, the Index Provider) should be derived from the sale of wearable devices.
  • Companies deriving only minimal revenue (as defined by EQM Indexes, the Index Provider) from the sale of wearable devices and/or who are primarily engaged in the manufacture of wearable components such as semiconductors, sensors, or displays will be considered for inclusion in the Non-Core Wearable investment pool.
  • Listing on a regulated stock exchange in the form of shares tradable for foreign investors without restrictions.
  • Market capitalization of at least 300 million USD.
  • Minimum price at time of purchase of $5 per share USD.
  • Average daily traded value of at least 2,000,000 USD over the last six months.
  • Adequate constituent liquidity and accessibility for an exchange listed product as determined by the Index Provider, EQM Indexes.
  • Non-US companies will be U.S. exchange traded ADR versions if available, assuming they meet liquidity requirements, otherwise local shares will be utilized that meet the listing requirements and meet the continuing analysis of liquidity.
  • No local shares, only ADRs, will be held for companies domiciled in Emerging Market countries or those listed on small regional exchanges.
The daily price and return of the EQM Wearables Index (WEARXT) is calculated and published by Solactive AG, a leading index developer, and calculation/publication agent for the ETP industry.
The EQM Wearables Index has been licensed to Exchange Traded Concepts (ETC). The ETF is sponsored by Eve Capital.  For information, click here.
The EQM Wearables Index is an EQM Indexes created index. Please email inquiries to info@eqmindexes.com.
Quotes for the EQM Wearables Index can be found each day under the symbol WEARXT on Bloomberg, on Reuters as .WEARXT, on the Wearables Index Summary website and from other financial data providers.  Quotes, returns, historical prices, and constituent weightings will also be updated daily on Wearables Index Summary.
The company did not meet the selection criteria when the index was last reconstituted. Companies that now meet index selection criteria will become candidates for inclusion at the next reconstitution date.
Eligible initial public offerings will be considered for inclusion on the index’s next scheduled semi-annual reconstitution date.  In the event of an IPO which the index committee deems has “high importance” for the EQM Wearables Index, the index committee can decide to include these companies on an extraordinary adjustment event basis.
If an index component’s stock is discontinued due to a merger or acquisition, the index committee may, at its sole discretion, replace the discontinued component at the time of discontinuation if more than 30 calendar days remain until the next reconstitution date.  The discontinued component will either be deleted entirely or be replaced with the next eligible security from a reserve list.  The replacement will be given the appropriate weighting given the securities country of domicile. If there are not more than 30 calendar days remaining until the next reconstitution date, the index committee will wait until the next reconstitution date to make the replacement.  In this scenario, any funds received from the discontinued security will be distributed to the remaining index components pro rata.
The index is rebalanced semi-annually and is scheduled for reconstitution on the second Wednesday of June and December.
The index follows a modified equal weighted methodology. Constituent weightings are “modified” in that each constituent’s weighting is based on the limitations of its respective pool. Once index constituents are determined, they are divided into two separate investment pools: Core and Non-Core wearable holdings. On each adjustment day, index components are equally weighted in their respective investment pools as either a Core and Non-Core wearable holding. Core members are subject to a multiplier of 1.5 times the equal weight and the residual Non-Core members are then equally weighted.