True Market-Cap Exposure to Communication Services
February 19, 2026
Read Time 2 MIN
Key Takeaways:
- Traditional sector ETFs may underweight mega-cap leaders due to diversification caps.
- The TRUC ETF seeks to replicate true market-cap Communication Services exposure through a hybrid structure designed to reflect today’s market realities.
- By combining direct holdings and targeted ETF exposure, TRUC helps reduce artificial weighting distortions.
The VanEck Communication Services TruSector ETF (TRUC) offers investors a new way to gain true market-cap exposure to the Communication Services sector.
The Problem: Traditional Sector ETFs Can Fall Short
In today’s market, a small number of mega-cap companies often dominate the performance of their sectors. Yet many traditional sector ETFs are structurally unable to mirror those market realities because of regulatory diversification rules that govern most U.S. ETFs. These rules:
- Cap any single holding at 25% of a fund’s assets.
- Limit the total weight of names above 5% to no more than 50% of the portfolio.
While designed to protect investors from concentration risk, these limits can force traditional sector funds to underweight the largest companies that drive performance and overweight smaller names to stay compliant, creating a mismatch between what investors think they own and what they actually hold.
Our Solution: TruSector ETF Structure
VanEck’s TruSector ETF suite, including TRUD and TRUT, addresses this challenge by delivering full market-cap sector exposure while remaining compliant with ETF diversification rules. The TruSector approach uses a hybrid structure that combines:
- Direct equity holdings in individual sector stocks up to regulatory limits.
- Positions in targeted sector ETFs for incremental exposure that does not count toward issuer concentration caps.
This structure allows TRUC to replicate the economic exposure of an uncapped sector benchmark — giving investors exposure to today’s true market leaders in Communication Services, without artificial weighting distortions.
Why the TRUC ETF Matters
With the launch of TRUC, investors and allocators now have a new precision tool for expressing a view on the Communication Services sector, one that:
- Aligns more closely with actual market-cap weights.
- Reduces unintended tracking differences relative to traditional sector funds.
- Fits seamlessly within diversified portfolios.
TRUC joins VanEck’s growing TruSector lineup, built to bring clarity and accuracy to sector investing in an evolving market environment.
Choose Your TruSector Strategy
VanEck Communication Services TruSector ETF (TRUC): Gain true market-cap exposure to the Communication Services sector.
VanEck Technology TruSector ETF (TRUT): Delivers full market-cap sector exposure with greater precision without the limitations of traditional sector funds.
VanEck Consumer Discretionary TruSector ETF (TRUD): Delivers full market-cap sector exposure with greater precision without the limitations of traditional sector funds.
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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 communication services sector, consumer discretionary sector, information technology sector, software industry, derivatives, equity securities, investing in other ETFs, 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.
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 communication services sector, consumer discretionary sector, information technology sector, software industry, derivatives, equity securities, investing in other ETFs, 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.
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.