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Hang Up Your Smartphone and Put On Smart Glasses

1 min read · 191 views Bong-Geun Choi Oct 11, 2022

Technology industry leaders are increasingly predicting that smart glasses will replace smartphones.  Alex Kipman, the inventor of the Microsoft Hololens, a mixed reality headset, went so far as to say that “smartphones are dead, but people don’t know it yet.”[1]  Will smart glasses replace smartphones?  What attractive features do they possess relative to the smartphone?

 

Integrating Augmented Reality

Smart glasses utilize augmented reality (AR) technology to overlay the physical world with digital information.  AR supplements or enhances our experiences with the real world through additional information that may not be readily available.

 

Some examples may include:

  • Mapping apps that can provide the user with real-time directions and navigation
  • Facial recognition to help you remember the person’s name to whom you are talking and providing additional information about them
  • Restaurant recommendations, reviews, and menus by just looking at a storefront or a streetscape
  • Translation of road signs from foreign languages
  • Viewing a store’s inventory from the outside
  • And, of course, making phone calls

 

Why Smart Glasses?

AR technology does not require a complete disassociation from the outside world like virtual reality (VR) technology does.  Therefore, it may serve as a natural bridge between the physical and digital worlds.

 

In the United States alone, almost 200 million people wear glasses for corrected vision, while global usage is estimated at over two billion.[2]  At the same time, most of us probe the world around us through our smartphones or tablets. Smart glasses combine these two items, giving more convenience and one less item to carry around.

 

Big Tech’s Interest in Smart Glasses

Many large global technology companies are racing to deploy AR technology and deliver smart glasses to the marketplace.  For example:

  • Apple is rumored to be delivering an AR headset, or smart glasses, to the market sometime in 2024[2]
  • Meta is also expected to deliver its own version of AR glasses to the marketplace in 2024, potentially months before Apple[2]
  • Snap’s glasses, currently in the marketplace, let users snap pictures and videos and add AR effects to those clips inside the Snapchat app[1] 
  • Microsoft’s Hololens, a mixed-reality headset, is already available, although it may be too large and wieldy for all-day, everyday use[2]

 

Estimates of Growth

The market for AR and VR headsets is expected to grow tenfold from 2021 through 2028. [2] Such estimates suggest an attractive investment opportunity.

 

How may investors gain exposure to companies involved in AR technology and, specifically, smart glasses technology?

 

The Fount Metaverse ETF (MTVR)

The Fount Metaverse ETF seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fount Metaverse Index.  The index was designed to measure the performance of companies that develop, manufacture, distribute, or sell products related to metaverse technology.

 

One of the four segments that MTVR focuses on is AR. 

 

Thus, MTVR may provide investors with exposure to companies at the forefront of AR and smart glasses technology.

 

For a full list of holdings, please click here.

 


 


[1] Fernandez, Ray, Will Smart Glasses Replace Smartphones?, TechRepublic, 7/28/22

[2] Mehta, Tushar, How AR Glasses Are Going From Niche Gadget to Smartphone Replacement, Digital Trends, 6/30/22


 

Bong-Geun Choi

Chief Economist

bchoi@fountinvestment.com

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Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 855-425-7426 or visit our website at www.fountetfs.com. Read the prospectus or summary prospectus carefully before investing.

Exchange Traded Concepts, LLC. serves as the investment advisor to the Funds. The Funds are distributed by SEI Investments Distribution Co., (SIDCO) 1 Freedom Valley Drive, Oaks, PA 19456. SIDCO is not affiliated with Exchange Traded Concepts, LLC. or Fount Investment Co. Ltd.

Risk Disclosure:

 

Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated objectives. In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles, or social, economic, or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. 

 

The Funds’ concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors. For MTVR, the Fund may be concentrated in the entertainment and interactive media & services industries. The entertainment industry is highly competitive and relies on consumer spending and the availability of disposable income for success, which may cause the prices of the securities of companies to fluctuate widely. The prices of the securities of companies in the interactive media & services industry are closely tied to the overall economy's performance. Changes in general economic growth, consumer confidence, and consumer spending may affect them. MTVR may also be subject to the specific risks associated with metaverse companies. These risks include but are not limited to small or limited markets, changes in business cycles, world economic growth, technological progress, rapid obsolescence, and government regulation. Smaller, start-up companies tend to be more volatile than securities of companies that do not rely heavily on technology. Metaverse Companies may rely on a combination of patents, copyrights, trademarks, and trade secret laws to establish and protect their proprietary rights. There can be no assurance that these steps will be adequate to prevent the misappropriation of their technology or that competitors will not develop technologies that are equivalent or superior to such companies’ technology.

 

For SUBS, the Fund may be concentrated in the software industry. Technological changes, pricing, retaining skilled employees, changes in demand, research & development, and product obsolescence can affect the profitability of software companies causing fluctuations in the market price of company securities. 

 

Both Funds are subject to communication services sector risk, which can involve the same risks as being concentrated in the software industry. Network security breaches, potential proprietary or consumer information theft, or service disruption can negatively affect companies’ stock prices.

 

The Funds are non-diversified. The Funds are new and have limited operating histories for investors to evaluate. New and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. 

0 MTVR · SUBS
MTVR · SUBS