As global investors revisit emerging markets allocations amid steady domestic growth signals from India and continued uncertainty around China, asset managers are refining how they offer exposure to the country's equity story. In that context, VanEck introduced two new ETFs last week: the VanEck India Select ETF (NYSE:INDZ) and the VanEck Communications Services TruSector ETF (NASDAQ:TRUC).

The launches reflect two parallel themes shaping ETF demand: more selective country allocations and closer alignment between sector funds and benchmark construction.

A More Selective Take On India

India has increasingly stood out within emerging markets, supported by structural reforms, infrastructure investment, rapid digital adoption and favorable demographics. But the country's equity market is also marked by high dispersion, where company-level fundamentals can drive sharply different outcomes.

VanEck is positioning INDZ as a strategy designed for that environment. Unlike traditional market-cap weighted India ETFs, the fund follows an actively managed, rules-based process that combines bottom-up research with quantitative screening. The focus, according to the firm, is on businesses demonstrating capital efficiency, resilient operating models and the potential for sustainable long-term earnings growth.

The argument behind the structure is straightforward: broad benchmarks may dilute returns by allocating capital across companies with widely varying quality profiles. By concentrating on firms seen as consistent value creators, the ETF aims to reduce what the firm characterizes as structural drag from persistent underperformers.

INDZ expands VanEck's existing India suite, which includes the VanEck Digital India ETF (NYSE:DGIN), focused on companies linked to the country's digitalization theme, and the VanEck India Growth Leaders ETF (NYSE:GLIN), which targets fundamentally strong firms with growth characteristics. With INDZ, the firm appears to be targeting investors looking for a more selective core allocation rather than thematic or pure growth exposure.

Rethinking Sector Construction

Alongside its India expansion, VanEck is also extending its TruSector ETF framework into communications services through TRUC.

The TruSector lineup, which already includes the VanEck Consumer Discretionary TruSector ETF (NASDAQ:TRUD) and the VanEck Technology TruSector ETF (NASDAQ:TRUT), is designed to address what the firm views as a structural limitation in traditional sector ETFs. Under Registered Investment Company (RIC) diversification rules, funds may be required to cap exposure to large constituents. This might lead to underweights to dominant stocks and heavier allocations to smaller names.

VanEck's approach uses a hybrid structure that combines direct equity holdings with targeted ETF exposure. The goal is to maintain uncapped sector representation while remaining compliant with RIC rules, thereby reducing tracking error relative to widely followed benchmarks.

With market performance increasingly driven by a narrow group of mega-cap stocks and sector concentration becoming more pronounced, the firm appears to be positioning TRUC as a more precise way to express a communications services view.

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