VanEck Launches TruSector ETFs to Address Regulatory Constraints in Sector Investing

VanEck has introduced TruSector ETFs targeting consumer discretionary and technology sectors, addressing the distortions caused by RIC diversification rules. These actively managed funds aim to deliver precise sector exposure while complying with regulatory limits on single-stock concentrations.

The technology sector's dominance by mega-cap stocks like Apple and Microsoft has historically forced sector funds to underweight these leaders. TruSector ETFs provide portfolio managers with tools to maintain proper sector representation without violating the 25% single-stock or 50% concentration rules for 5%+ holdings.

While initially launching in two problematic sectors, VanEck signals potential expansion to other areas where regulatory constraints create tracking challenges. The MOVE comes as active ETFs see record inflows, reflecting growing institutional demand for sophisticated portfolio construction tools.