Active Vs. Passive Sector Exposure: An Investor's Guide
VanEck·2026-05-01·via All Articles on Seeking Alpha
Summary
Passive sector ETFs that seek to track indices with built-in RIC diversification rules that can force them to underweight the largest companies in a sector and overweight the smaller ones, distorting the exposure investors actually receive.
Active sector ETFs have structural flexibility to get closer to true market-cap exposure, particularly in concentrated sectors like technology and consumer discretionary.
VanEck TruSector ETFs hold individual stocks alongside positions in other sector ETFs to deliver full market-cap exposure without violating RIC limits.
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In concentrated sectors, passive ETFs miss the companies driving returns. VanEck TruSector ETFs use an active hybrid structure to deliver exposure that reflects true market-cap weights.
