SMH vs. DAPP

Last updated Jun 4, 2026

SMH (VanEck Semiconductor ETF) and DAPP (VanEck Digital Transformation ETF) are both exchange-traded funds - SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index, while DAPP is a Technology Equities fund tracking the MVIS Global Digital Assets Equity Index. Both are passively managed. Over the past 5 years, SMH returned 39.21%/yr vs -0.16%/yr for DAPP. A 0.57 correlation means they provide meaningful diversification when combined. SMH charges 0.35%/yr vs 0.50%/yr for DAPP.

Performance

SMH vs. DAPP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Semiconductor ETF (SMH) and VanEck Digital Transformation ETF (DAPP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMH achieves a 77.13% return, which is significantly higher than DAPP's 33.03% return.

SMH

• 1D: 0.90%
• 1M: 25.87%
• YTD: 77.13%
• 6M: 75.61%
• 1Y: 157.20%
• 3Y*: 64.17%
• 5Y*: 39.21%
• 10Y*: 37.68%

DAPP

• 1D: -2.57%
• 1M: 10.45%
• YTD: 33.03%
• 6M: 15.86%
• 1Y: 55.85%
• 3Y*: 57.26%
• 5Y*: -0.16%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SMH vs. DAPP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SMH VanEck Semiconductor ETF	77.13%	49.17%	39.10%	73.38%	-33.53%	24.08%
DAPP VanEck Digital Transformation ETF	33.03%	15.03%	44.87%	285.02%	-85.60%	-38.65%

Correlation

The correlation between SMH and DAPP is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (All Time) Calculated using the full available price history since Apr 15, 2021	0.57

The correlation between SMH and DAPP has been stable across timeframes, ranging from 0.48 to 0.57 - a consistent structural relationship.

SMH vs. DAPP - Sectors Allocation Comparison

Sectors	SMH	DAPP
Technology	100.0%	28.8%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	2.7%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	68.5%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

SMH vs. DAPP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

DAPP

DAPP Risk / Return Rank: 25
DAPP Sharpe Ratio Rank: 25
DAPP Sortino Ratio Rank: 28
DAPP Omega Ratio Rank: 26
DAPP Calmar Ratio Rank: 24
DAPP Martin Ratio Rank: 20

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SMH vs. DAPP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Semiconductor ETF (SMH) and VanEck Digital Transformation ETF (DAPP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	SMH	DAPP	Difference
Sharpe ratio: Return per unit of total volatility	5.19	0.91	+4.27
Sortino ratio: Return per unit of downside risk	5.22	1.54	+3.68
Omega ratio: Gain probability vs. loss probability	1.72	1.18	+0.54
Calmar ratio: Return relative to maximum drawdown	10.59	1.16	+9.43
Martin ratio: Return relative to average drawdown	40.63	2.28	+38.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMH vs. DAPP - Sharpe Ratio Comparison

The current SMH Sharpe Ratio is 5.19, which is higher than the DAPP Sharpe Ratio of 0.91. The chart below compares the historical Sharpe Ratios of SMH and DAPP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SMH	DAPP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	5.19	0.91	+4.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.13	-0.00	+1.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.16	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	-0.07	+0.41

Drawdowns

SMH vs. DAPP - Drawdown Comparison

The maximum SMH drawdown since its inception was -84.96%, smaller than the maximum DAPP drawdown of -91.90%. Use the drawdown chart below to compare losses from any high point for SMH and DAPP.

Drawdown Indicators

	SMH	DAPP	Difference
Max Drawdown Largest peak-to-trough decline	-84.96%	-91.90%	+6.94%
Max Drawdown (1Y) Largest decline over 1 year	-14.93%	-48.21%	+33.28%
Max Drawdown (3Y) Largest decline over 3 years	-35.74%	-58.88%	+23.14%
Max Drawdown (5Y) Largest decline over 5 years	-45.30%	-91.90%	+46.60%
Max Drawdown (10Y) Largest decline over 10 years	-45.30%	—	—
Current Drawdown Current decline from peak	0.00%	-27.06%	+27.06%
Average Drawdown Average peak-to-trough decline	-41.09%	-57.42%	+16.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.89%	24.56%	-20.67%

Volatility

SMH vs. DAPP - Volatility Comparison

The current volatility for VanEck Semiconductor ETF (SMH) is 11.47%, while VanEck Digital Transformation ETF (DAPP) has a volatility of 15.49%. This indicates that SMH experiences smaller price fluctuations and is considered to be less risky than DAPP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMH	DAPP	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.47%	15.49%	-4.02%
Volatility (6M) Calculated over the trailing 6-month period	24.29%	46.31%	-22.02%
Volatility (1Y) Calculated over the trailing 1-year period	30.56%	61.71%	-31.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.01%	72.90%	-37.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.57%	72.64%	-40.07%

SMH vs. DAPP - Expense Ratio Comparison

SMH has a 0.35% expense ratio, which is lower than DAPP's 0.50% expense ratio.

Dividends

SMH vs. DAPP - Dividend Comparison

SMH's dividend yield for the trailing twelve months is around 0.17%, while DAPP has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DAPP VanEck Digital Transformation ETF	0.00%	0.00%	4.04%	0.00%	0.00%	10.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SMH VanEck Semiconductor ETF	0.17%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both SMH and DAPP in my portfolio?

SMH and DAPP have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMH or DAPP?

DAPP has higher volatility (15.49%) compared to SMH (11.47%). In terms of maximum drawdown, SMH dropped -84.96% vs DAPP's -91.90%.

Which ETF is better, SMH or DAPP?

On 5-year performance, SMH leads with 39.21% vs -0.16% for DAPP. On fees, SMH is cheaper at 0.35% per year. On volatility, SMH has been the lower-risk option at 11.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMH or DAPP?

Over the 5-year period, SMH has performed better with a 39.21% return vs -0.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMH or DAPP?

SMH is cheaper with a 0.35% expense ratio, compared with 0.50% for DAPP.

Which ETF pays a higher dividend yield, SMH or DAPP?

SMH has the higher dividend yield at 0.17%, compared with 0.00% for DAPP.

What is the main difference between SMH and DAPP?

SMH is categorized as Semiconductors, while DAPP is Technology Equities. SMH tracks MVIS US Listed Semiconductor 25 Index, while DAPP tracks MVIS Global Digital Assets Equity Index. Their fees differ too: 0.35% for SMH and 0.50% for DAPP.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (5.19 vs 0.91), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.