VanEck’s TruSector ETFs are designed to deliver full market-cap sector exposure and help asset allocators track sector benchmarks with greater precision by overcoming the allocation caps imposed on traditional sector funds.

VanEck is announcing the launch today of two actively managed ETFs built to solve one of the most persistent issues in sector investing: the tracking error caused when Registered Investment Company (RIC) diversification rules force sector funds to underweight the largest companies in their benchmarks.

The VanEck Consumer Discretionary TruSector ETF (TRUD) and VanEck Technology TruSector ETF (TRUT) are designed to give investors full market-cap sector exposure, providing closer alignment with how the market itself defines each sector.

RIC rules limit how much an ETF can invest in any single company—for example, funds cannot hold more than 25% in a single stock and stocks with a 5% weighting or more cannot make up more than 50% of the portfolio. In sectors dominated by a few large names, such as Technology where NVIDIA and Microsoft alone can make up over 40% of the sector, these limits require traditional sector funds to scale back exposure to the biggest companies. This distorts sector weightings and increases the potential for performance differences when compared with uncapped benchmarks.

“Many investors assume that sector ETFs fully mirror the broad relative benchmarks, but RIC diversification rules often prevent that,” said Michael Cohick, Director of Product Management at VanEck. “Our new TruSector ETFs are designed to provide full sector exposure while staying within regulatory limits.”

VanEck’s TruSector ETFs offer uncapped sector exposure while maintaining compliance with RIC diversification rules by adopting a hybrid approach, holding a mix of individual equities and targeted ETFs. By doing so, the funds can maintain uncapped exposure to the sector’s leading contributors and avoid the overallocation to smaller names common in traditional sector ETFs. This results in cleaner attribution, lower tracking error to widely followed benchmarks and no unintended stock biases.

“By removing artificial caps and keeping sectors aligned with the market leaders, the TruSector ETFs provide asset allocators and model portfolio managers with precision tools for tracking sector benchmarks,” Mr. Cohick added. “They simplify the process of gaining true sector exposure in a single, liquid, tax-efficient ETF wrapper.”

The launch of the TruSector ETFs follows VanEck’s recent commemoration of its 70th anniversary earlier this month, marking another milestone in the firm’s long history of delivering intelligently designed solutions that address structural gaps in the investment landscape.

For more information about VanEck and its investment offerings, please visit www.vaneck.com.

About VanEck

VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.

Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of July 31, 2025, VanEck managed approximately $135.8 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.

Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.

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 VanEck Consumer Discretionary TruSector ETF (TRUD) and the VanEck Technology TruSector ETF (TRUT) (together, the “Funds”) may be subject to risks which include, among others, risks related to investing in communication services related companies, 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, new fund, seed investor, no guarantee of active trading market, trading issues, fund shares trading, premium/discount and liquidity of fund shares, concentration, and non-diversified 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 a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.

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“By removing artificial caps and keeping sectors aligned with the market leaders, the TruSector ETFs provide asset allocators and model portfolio managers with precision tools for tracking sector benchmarks,” Michael Cohick, Director of Product Management.