Rebeca Moen
Oct 10, 2025 07:16
VanEck’s TruSector ETFs provide actively managed sector exposure, aiming for full market-cap representation and precise benchmark tracking, according to VanEck.
VanEck TruSector ETFs are designed to offer investors actively managed sector exposure with the aim of delivering full market-cap representation and precise benchmark tracking. According to VanEck, these ETFs are strategically structured to provide exposure across various sectors, including consumer discretionary and information technology, while maintaining alignment with specific benchmarks.
Investment Strategy and Management
The TruSector ETFs utilize a combination of publicly traded common stocks, exchange-traded products, and derivative instruments, such as total return swaps, to achieve their investment goals. The fund’s exposure to derivatives is typically limited to 20% of the notional value of the portfolio, ensuring a balanced approach to risk management.
Sector and Market Exposure
These ETFs focus on sectors like information technology and consumer discretionary, allowing investors to capitalize on growth opportunities within key industries. The S&P 500 Index serves as a benchmark, comprising 500 widely held common stocks from leading U.S. industries, which the TruSector ETFs aim to track closely.
Risks and Considerations
Investing in TruSector ETFs involves substantial risk and high volatility, with the potential for loss of principal. Key risks include those associated with the consumer discretionary and information technology sectors, derivatives, equity securities, and medium- and large-capitalization companies. Investors should also be mindful of operational and market risks, as well as issues related to fund shares trading and liquidity.
Investor Guidance
Prospective investors are advised to carefully consider the investment objectives, risks, charges, and expenses associated with TruSector ETFs. It is crucial to review the prospectus and summary prospectus, which provide detailed information about the fund, before making any investment decisions.
Van Eck Securities Corporation, a wholly owned subsidiary of Van Eck Associates Corporation, acts as the distributor for these funds, ensuring compliance and regulatory oversight.
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