Core Insights - The iShares Exponential Technologies ETF (XT US) targets global companies involved in "exponential" technologies, focusing on those with a free-float market cap greater than USD 300 million and a 3-month average daily trading volume (ADTV) of at least USD 2 million [1] Group 1: Portfolio Construction Methodology - The underlying index prioritizes the top 10 "theme leaders" per theme based on their scores, aiming for a total of 200 constituents through a cross-theme ranking system [1] - The index is float-market-cap weighted with a single-stock cap of 4%, and core exposure to any theme is capped at 25% [1] - At least 90% of the index weight must have a forecasted 5-year revenue exposure of at least 25% to one theme, with annual reconstitution and quarterly rebalancing [1]

Layer 1 Valuation - Layer 1 (L1) valuations are driven more by binary ideology than exponential technologies [1] - The analysis offers a philosophical perspective on L1 valuations from a trader's point of view [1]