The LIT ETF doesn't buy or sell based on "what they know". The LIT ETF buying is passive in approach. The LIT ETF is an index-based ETF that tracks movements of securities to match the relative buying / selling levels of all the components in the index.
https://www.globalxfunds.com/content/files/LIT-factsheet.pdf
It uses this Solative index:
https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet_DE000A1EY8J4.pdf
Solactive will have their own criteria based on primarily market cap and liquidity for determining changes in the components of the index. They do this on a periodic basis.
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