PYZ vs TRUT

PYZBInvesco Dorsey Wright Basic Materials Momentum ETF

TRUTAVanEck Technology TruSector ETF

In short

PYZ Materials, ranked by momentum. PYZ scores US basic-materials stocks on relative strength, holds at least 30 of the strongest, and weights them by momentum score rather than market cap. Reshuffled quarterly since 2006.

TRUT Diversification rules force most tech ETFs to trim their biggest names. TRUT's answer: own the giants directly up to the legal line, then top up with sector ETFs so the portfolio mirrors the sector's real shape.

Stated mandate

PYZ The fund normally invests at least 90% of its total assets in securities comprising its index. The index selects at least 30 Nasdaq US securities showing relative strength, or momentum.

TRUT The Fund seeks long-term capital appreciation through active investment in securities of information technology-related companies or instruments providing exposure to them.

Why people hold it

• PYZ The index scores materials stocks on relative strength, keeps the 30-plus highest, and lets top scorers carry the biggest weights. Market cap does not set the lineup.sec.gov
• A fresh read four times a year: fund and index are rebalanced and reconstituted quarterly, so names that lose relative strength drop out instead of lingering.sec.govnasdaq.com
• 0.60% net of a waiver through August 31, 2028 (0.79% gross), near the typical cost in its active sector peer group, where it stands in the upper half.
• Trading since 2006, so this momentum rotation has run through multiple commodity cycles. Pays quarterly.

• TRUT The mechanism is the point. Fund rules cap one stock at 25% and stocks above 5% at 50% combined; TRUT fills the gap with targeted sector ETFs instead of overweighting smaller names.vaneck.comvaneck.com 2
• 0.14% a year for an actively managed fund, against a median near 0.65% across active US equity peers. Cheap enough to sit alongside index products.
• One of the two originals in VanEck's TruSector line, launched in 2025. The approach has since been extended across all 11 GICS sectors.vaneck.comvaneck.com 2
• About 80 positions, quarterly distributions, and steady day-to-day trading. On cost and tradability it lands in the upper tier of its active US equity cohort.

Worth knowing

• PYZ Roughly 40 stocks inside one cyclical sector, tilted toward whatever has been working. That concentration moves harder than a broad-market fund in both directions.
• Momentum reads the past. With the screen on a quarterly clock, a sharp turn in materials can leave last quarter's leaders in the book until the next reconstitution.sec.gov
• One of the smaller and less traded funds in its category, so bid-ask spreads run wider than on mega sector ETFs. Limit orders are the standard tool.

• TRUT Part of the exposure arrives through other ETFs rather than shares the fund holds outright. That is the workaround that makes uncapped weights possible, and it adds a layer.vaneck.com
• Uncapped means concentrated. Leaning fully into tech's largest companies ties results to a handful of mega-caps more tightly than a capped sector fund would.vaneck.com
• Launched August 2025, so there is only a short record of how closely the hybrid build actually shadows an uncapped tech benchmark.

Full PYZ profile⁠

Full TRUT profile⁠