Key Takeaways

• Traditional sector ETFs cap their largest holdings, resulting in diluted exposure to the sector.
• True-weight exposure reflects the sector as the market actually weights it.
• VanEck’s TruSector suite covers all 11 GICS sectors of the U.S. equity market under a consistent, uncapped framework.
• The complete suite makes sector rotation, tilts and overweights cleaner to execute.

Traditional sector ETFs are built around rules that cap exposure to the biggest names in a given sector. On paper, that may sound like prudent diversification. In practice, it can produce a portfolio that doesn’t reflect where the weight and the growth in that sector actually live. This means that an investor buys a sector fund expecting exposure to the sector but ends up with a diluted version of it, with the leaders trimmed back and the exposure spread thinner than the market itself.

For years, sector investors faced the same tradeoff with each allocation: accept a capped-down version of the sector or look elsewhere for the exposure they wanted. VanEck’s suite of TruSector ETFs was designed to eliminate that tradeoff.

Each TruSector ETF is actively managed using a hybrid construction process that combines individual equity holdings with ETF exposures. This allows the funds to maintain close alignment with the full market-cap weight of each sector, including its largest constituents, while still meeting applicable regulatory requirements. The result is sector exposure that reflects how each sector actually exists in the market, not a modified version of it shaped by diversification caps.

Now that the TruSector suite is complete, investors no longer have to check whether one sector’s fund is watering down its largest holdings while another isn’t. Neither do they have to mix true-weight exposure in sectors with cap-constrained exposure in others to fill out a portfolio’s target allocation. Every ETF in the suite applies the same philosophy to each sector, so the exposures line up and comparisons across sectors are apples to apples.

That’s what a complete toolkit unlocks. Sector rotation, tactical tilts, overweights and underweights all become cleaner when every building block is constructed the same way.

TruSector ETF Suite Offers Complete GICS Sector Coverage

Sector investing isn’t just about getting exposure to a single sector. No one sector outperforms the rest year in and year out, so the goal is being able to selectively allocate across the different sectors. The TruSector ETFs offer a way for investors to shift between sectors, each at its true weight, rather than piecing exposure together across providers or settling for a capped-down version of one.

VanEck’s TruSector ETF suite covers all 11 GICS sectors of the U.S. equity market:

• VanEck Communications Services TruSector ETF (TRUC)
• VanEck Consumer Discretionary TruSector ETF (TRUD)
• VanEck Consumer Staples TruSector ETF (TRUO)
• VanEck Energy TruSector ETF (TRUN)
• VanEck Financial TruSector ETF (TRUF)
• VanEck Healthcare TruSector ETF (TRUH)
• VanEck Industrials TruSector ETF (TRUI)
• VanEck Technology TruSector ETF (TRUT)
• VanEck Materials TruSector ETF (TRUM)
• VanEck Real Estate TruSector ETF (TRUR)
• VanEck Utilities TruSector ETF (TRUU)

Who Should Be Paying Attention

Advisors and investors who run sector-based strategies, whether that’s rotation, tactical tilts, or long-term structural positioning, now have a full set of tools built for that job. If you’ve ever worried that your sector exposure wasn’t really capturing the sector, the complete suite is worth a look.

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