The VanEck Digital Transformation ETF has significantly underperformed both Bitcoin and the S&P 500 since its inception in 2021. DAPP's inflexible passive strategy and material exposure to crypto miners limit its appeal versus actively managed competitors like BLOK that are better able to evolve with an immature industry. The fund's Index lacks any qualitative screening, and improvements in portfolio construction are urgently needed.
Investors seeking to tap the potential rally on tariff pause should invest in beaten-down tech ETFs.
Bitcoin has been rangebound between $90,000-$109,000, affecting crypto-related stocks, while gold has outperformed year-to-date. I maintain a hold rating on the VanEck Digital Transformation ETF due to mixed valuation and technical trends, despite its substantial growth. DAPP's portfolio has diversified with increased large-cap exposure and a high long-term EPS growth rate, but its elevated P/E ratio poses risks.
![]() DAPP 7 months ago | Other | $0.58 Per Share |
![]() DAPP 20 Dec 2021 Paid | Other | $1.88 Per Share |
![]() DAPP 7 months ago | Other | $0.58 Per Share |
![]() DAPP 20 Dec 2021 Paid | Other | $1.88 Per Share |
NASDAQ (NMS) Exchange | US Country |
The aforementioned company operates within the financial sector, specifically focusing on investment in Digital Transformation Companies. Its primary investment strategy involves allocating at least 80% of its total assets towards securities of companies that are significantly involved in the digital transformation sector. The objective is to track and replicate the performance of a global index dedicated to Digital Transformation Companies. Notably, the fund distinguishes itself by abstaining from investments in digital assets such as cryptocurrencies, including direct purchases, derivatives, or initial coin offerings, thereby adhering to a traditional yet focused investment approach in the digital transformation space. This fund is non-diversified, indicating a concentrated investment strategy in the digital transformation niche.
The company’s primary offering is its investment fund that targets Digital Transformation Companies. Below is an outline of the fund's characteristics: