Nasdaq 100 ETF Framework Based on Sector Composition and Defined Listing Rules

Highlights

• Tracks non-financial companies with strong presence in technology, consumer, and healthcare segments

• Operates on a rule-based selection and classification methodology reviewed at set intervals

• Includes cross-industry representation with global activity but adheres to domestic listing criteria

The Nasdaq 100 ETF operates within the equity-based financial instruments category, linked to an index that excludes financial institutions. It reflects market behavior through participation by leading technology, healthcare, communications, and consumer-related companies. The focus of this structure is sector clarity and market classification, offering a standardized view of operational participation without involving any speculative component.

Index-Linked Design and Operational Principles

This ETF follows a rule-oriented structure that mirrors the performance of its associated index. Only non-financial entities are included, selected through clear criteria such as trading frequency, liquidity, and public float. These standards ensure that each company within the ETF maintains consistency with predefined benchmarks, making the structure objective in its composition.

Operational design remains consistent throughout rebalancing cycles. The ETF does not employ discretionary inputs in its selection, instead relying entirely on verifiable metrics and scheduled evaluations.

Sector-Based Classification and Participation

Technology forms the largest sectoral base in the ETF, incorporating software, electronics, digital services, and data systems. Consumer-oriented companies follow closely, covering areas such as entertainment, logistics, retail operations, and product delivery platforms. Communication networks also feature within this structure, including various digital and streaming platforms.

Healthcare is another central segment, including diagnostics, medical equipment, and regulated life sciences. Entities are included based on operational scale and compliance with structural listing metrics rather than subjective assessments.

Eligibility Filters and Structural Oversight

Companies in the ETF are screened using criteria such as share float, market activity, and sector alignment. Financial entities are excluded by rule. Public availability of shares and adherence to liquidity thresholds are necessary to maintain inclusion.

The ETF undergoes periodic evaluations during which non-compliant entities may be removed. Replacements are selected using the same publicly stated methodology, ensuring consistency without applying forward-looking assumptions.

Response to Economic Data Without Speculative Inference

While ETF performance may shift in tandem with macroeconomic publications, such as employment levels or industrial activity, these movements are reflective rather than predictive. The ETF does not project outcomes but instead aligns with released data that meets objective thresholds.

No evaluative commentary influences ETF behavior, and the structure refrains from implying any directional interpretation based on global or domestic events.

Global Activity with Domestic Listing Requirements

Though domestically listed, many of the ETF's components conduct operations in multiple regions. Their activities span across logistics, data centers, and digital platforms that interact with international regulations and global infrastructure.

Despite these operational footprints, eligibility in the ETF is based solely on domestic listing standards and trading records, not international footprint or strategic expansion.

Digital Infrastructure and Technological Emphasis

A significant portion of the ETF’s holdings comprises companies offering cloud solutions, platform-based services, digital commerce architecture, and information systems. These firms often contribute to large-scale infrastructure while adhering to regulatory and reporting conditions.

The ETF structure does not assign weight based on innovation but rather on trading consistency, liquidity, and adherence to predefined benchmarks.

Service-Based and Healthcare Participation

Service-oriented firms in the ETF include areas such as entertainment delivery, consumer platforms, and retail logistics. Their inclusion is based on the ETF's screening methodology, which prioritizes actual operational metrics over performance assumptions.

Healthcare participants contribute through the development of medical devices, treatment systems, and pharmaceutical infrastructure. These companies align with the broader classification rules applied uniformly across all sectors.

Review Schedule and Adjustment Consistency

ETF composition is updated according to a fixed calendar, during which eligibility and sector representation are reviewed. Adjustments are made in line with criteria such as volume, liquidity, and compliance with sector rules.

These scheduled updates allow the Nasdaq 100 ETF to maintain its intended structure without incorporating projections or qualitative assessments. The realignment process ensures continued accuracy in reflecting its benchmark.