Sector Leaders at True Market Weights

Sectors can be building blocks of an asset allocation strategy with benefits beyond simply investing in a single S&P 500 ETF. However, the tools investors rely on to access them haven’t kept pace with how markets have evolved. At VanEck, we believe investors deserve sector exposures that reflect the true size of today’s largest companies, not ones constrained by legacy design or outdated assumptions.

This belief led us to develop the actively managed TruSector ETFs, a new approach to sector investing that seeks to deliver more accurate representative exposure to the stocks in each sector that drive long-term performance, including:

• VanEck Technology TruSector ETF (TRUT)
• VanEck Consumer Discretionary TruSector ETF (TRUD)
• VanEck Communications Services TruSector ETF (TRUC)
• VanEck Financials TruSector ETF (TRUF)
• VanEck Healthcare TruSector ETF (TRUH)

It’s Time for a New Approach to Sector Investing

Over the past decade, concentration has intensified, especially in areas like the technology and consumer discretionary sectors. A handful of companies now account for a growing share of total performance in each sector, yet most traditional sector ETFs are subject to structural constraints that limit their ability to reflect this reality.

This disconnect has led to two persistent challenges:

1. Underrepresentation of dominant companies
2. Distorted tracking relative to uncapped benchmarks

Capping Weights of Top Constituents Creates Unintended Overweights

Source: Factset. As of 12/31/2025. Index holdings and performance are not illustrative of fund holdings or performance. It is not possible to invest directly in an index.

Source: FactSet as of 06/30/2025. Index holdings are not illustrative of fund holdings. Not intended as a recommendation to buy or sell any names referenced herein. Fund holdings may vary. Visit vaneck.com/trud or vaneck.com/trut for most recent complete holdings information. Please see index definitions below.

Source: Factset. As of 12/31/2025. Index holdings and performance are not illustrative of fund holdings or performance. It is not possible to invest directly in an index.

Rather than trying to retrofit older tools into a new environment, we chose to start fresh with a strategy built for real-world market dynamics and forward-looking portfolio construction.

The Principles Behind TruSector

TruSector ETFs are grounded in a few simple but powerful principles:

• Economic Accuracy: We aim to reflect the market as it exists, not as regulations might artificially force it, while still complying with diversification rules.
• Strategic Flexibility: Our team can adjust to changing sector landscapes rather than locking into static weights.
• ETF Simplicity: Despite the innovation inside, TruSector ETFs are designed to be familiar, transparent, and easy to use, like any other ETF.

Sector Exposure Built with Allocators in Mind

Whether you are constructing models or refining tactical views, clean sector exposure matters. With TruSector ETFs, we aim to give portfolio builders a more precise tool set, reducing unintended tilts and performance drift that can come from traditional ETFs.

This is not about chasing benchmarks. It is about giving investors access to sectors in a way that is aligned with how the market actually exists.

Variance in Weights Creates Difference in Performance

Source: Morningstar, Data as of 12/31/2025.
Index performance is not fund performance. TruSector ETFs may not replicate the differential shown. The uncapped approach can also underperform.

Starting with Tech and Consumer Discretionary

We launched the TruSector suite with three of the most structurally distorted sectors:

• Information Technology (TRUT)
• Consumer Discretionary (TRUD)
• Communications Services (TRUC)

These sectors are increasingly dominated by large firms that traditional ETFs often underweight. TruSector is designed to better reflect these realities.

Expanding into Financials and Healthcare

We are now bringing the TruSector methodology to two additional sectors with the launch of the VanEck Financials TruSector ETF (TRUF) and VanEck Healthcare TruSector ETF (TRUH). Financials and healthcare have not faced the same concentration–driven weighting distortions as the initial three sectors, but they share the same need for precise, benchmark-aware construction. TRUF and TRUH extend the suite's core philosophy that investors deserve sector exposures built for how markets actually work today, not how they worked decades ago.

TruSector builds on VanEck’s legacy of staying ahead of structural shifts in markets and rethinking what’s possible in investing. It brings a modern approach to sector exposure, designed to help investors strengthen their core portfolios.