Last week, VanEck rolled out two new sector-focused ETFs — VanEck Financials TruSector ETF (NASDAQ:TRUF) and VanEck Healthcare TruSector ETF (NASDAQ:TRUH)— as it continues to build out its TruSector ETF suite. The launches add to an existing lineup that includes VanEck Consumer Discretionary TruSector ETF (NASDAQ:TRUD), VanEck Technology TruSector ETF (NASDAQ:TRUT), and VanEck Communications Services TruSector ETF (NASDAQ:TRUC). The strategy behind these funds is to offer full market-cap sector exposure that more closely mirrors how sectors are actually structured in the broader market.
Traditional sector ETFs often dilute exposure to mega-cap leaders due to diversification constraints under RIC rules. VanEck's TruSector approach aims to address this by maintaining meaningful allocations to dominant companies—either directly or through targeted ETF exposure—while staying compliant.
The firm says this results in cleaner sector representation, reduced tracking error, and fewer unintended stock biases. Both new ETFs come with a competitive expense ratio, targeting investors seeking more precise sector allocation tools.
Key Features of TRUF & TRUH:
- Focused sector exposure: TRUF targets financial heavyweights such as Berkshire Hathaway Inc (NYSE:BRK), JPMorgan Chase & Co (NYSE:JPM), and Visa Inc (NYSE:V), which together account for nearly 31% of the portfolio.
- Healthcare concentration: TRUH's top holdings include Eli Lilly & Co (NYSE:LLY), Johnson & Johnson (NYSE:JNJ), Abbvie Inc (NYSE:ABBV), accounting for about 32% combined.
- RIC-compliant structure: Maintains exposure to sector leaders without breaching diversification limits.
- Lower tracking error: Designed to better align with real-world sector composition compared to traditional ETFs.
- Cost-efficient: Both funds carry an expense ratio of 0.10%.
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