VanEck Launches TruSector ETFs to Address Sector Investment Challenges

VanEck has introduced two actively managed ETFs—VanEck Consumer Discretionary TruSector ETF (TRUD) and VanEck Technology TruSector ETF (TRUT)—aimed at solving tracking errors caused by RIC diversification rules. Traditional sector funds often underweight large-cap companies due to regulatory constraints, distorting sector weightings and performance.

The new ETFs provide full market-cap exposure, aligning more closely with uncapped benchmarks. In sectors like Technology, where giants like NVIDIA and Microsoft dominate, RIC rules force funds to limit single-stock holdings to 25% and cap concentrated positions at 50% of the portfolio. VanEck's solution aims to mirror sector benchmarks more accurately, offering investors precise exposure without regulatory compromises.