Sector Leaders at True Market Weights
August 21, 2025
Read Time 3 MIN
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sector exposures that reflect the true size of today’s largest companies, not ones constrained by legacy design or outdated assumptions.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 VanEck Consumer Discretionary TruSector ETF (TRUD) and VanEck Technology TruSector ETF (TRUT), 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.
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:
- Underrepresentation of dominant companies
- Distorted tracking relative to uncapped benchmarks
Capping Weights of Top Constituents Creates Unintended Overweights
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.
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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
| 3M | YTD | 1Y | 3Y | |
| S&P Technology Select Sector TR | 22.90 | 9.37 | 12.83 | 26.96 |
| S&P 500 Sec/Information Technology TR | 23.71 | 8.05 | 15.10 | 31.78 |
| Performance Differentiation | 0.81 | (1.32) | 2.28 | 4.82 |
| S&P Consumer Disc Select Sector TR | 10.36 | -2.58 | 20.41 | 17.65 |
| S&P 500 Sec/Cons Disc TR | 11.52 | -3.87 | 18.40 | 18.64 |
| Performance Differentiation | 1.17 | (1.29) | (2.01) | 0.99 |
Source: Morningstar, As of 06/30/2025. Index performance is not illustrative of fund performance. It is not possible to invest directly in an index. Past performance is no guarantee of future results. Please see index definitions below.
Starting with Tech and Consumer Discretionary
We launched the TruSector suite with two of the most structurally distorted sectors:
Both sectors are increasingly dominated by large firms that traditional ETFs often underweight. TruSector is designed to better reflect these realities. And while we are starting here, we are not stopping here. Expansion into other sectors is under consideration.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.
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Important Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
An investment in the Funds may be subject to risks which include, among others, risks related to investing in the consumer discretionary sector, information technology sector, software industry, derivatives, equity securities, investing in other ETFs, fund of funds, investment restrictions, issuer-specific changes, medium- and large-capitalization companies, market, operational, active management, authorized participant concentration, seed investor, new fund, no guarantee of active trading market, trading issues, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Funds. Medium- and large-capitalization companies may be subject to elevated risks.
The S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.
S&P 500 Information Technology Total Return Index is a sector-based index representing the information technology constituents of the S&P 500. It includes companies involved in industries such as software, semiconductors, IT services, and hardware, and measures total return including price performance and reinvested dividends.
S&P 500 Consumer Discretionary Total Return Index tracks the performance of consumer discretionary sector companies within the S&P 500, including industries such as retail, automobiles, apparel, and media. The index includes reinvested dividends and reflects the total return of the sector.
S&P Technology Select Sector Total Return Index measures the performance of the technology and telecommunications services sectors of the S&P 500. It includes companies involved in software, hardware, semiconductors, and related services, and reflects total return including price performance and reinvested dividends.
S&P Consumer Discretionary Select Sector Total Return Index tracks the performance of consumer discretionary companies within the S&P 500. It includes industries such as retail, automobiles, consumer services, and media, and captures total return including price appreciation and dividends reinvested.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com/etfs . Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
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Important Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
An investment in the Funds may be subject to risks which include, among others, risks related to investing in the consumer discretionary sector, information technology sector, software industry, derivatives, equity securities, investing in other ETFs, fund of funds, investment restrictions, issuer-specific changes, medium- and large-capitalization companies, market, operational, active management, authorized participant concentration, seed investor, new fund, no guarantee of active trading market, trading issues, fund shares trading, premium/discount and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Funds. Medium- and large-capitalization companies may be subject to elevated risks.
The S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.
S&P 500 Information Technology Total Return Index is a sector-based index representing the information technology constituents of the S&P 500. It includes companies involved in industries such as software, semiconductors, IT services, and hardware, and measures total return including price performance and reinvested dividends.
S&P 500 Consumer Discretionary Total Return Index tracks the performance of consumer discretionary sector companies within the S&P 500, including industries such as retail, automobiles, apparel, and media. The index includes reinvested dividends and reflects the total return of the sector.
S&P Technology Select Sector Total Return Index measures the performance of the technology and telecommunications services sectors of the S&P 500. It includes companies involved in software, hardware, semiconductors, and related services, and reflects total return including price performance and reinvested dividends.
S&P Consumer Discretionary Select Sector Total Return Index tracks the performance of consumer discretionary companies within the S&P 500. It includes industries such as retail, automobiles, consumer services, and media, and captures total return including price appreciation and dividends reinvested.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com/etfs . Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.