SMOT vs. DAPP

Last updated Jul 15, 2026

SMOT (VanEck Morningstar SMID Moat ETF) and DAPP (VanEck Digital Transformation ETF) are both exchange-traded funds - SMOT is a Mid Cap Blend Equities fund tracking the Morningstar US Small-Mid Cap Moat Focus, while DAPP is a Blockchain fund tracking the MVIS Global Digital Assets Equity Index. Both are passively managed. Over the past 3 years, SMOT returned 9.60%/yr vs 27.83%/yr for DAPP. A 0.50 correlation means they provide meaningful diversification when combined. SMOT charges 0.49%/yr vs 0.52%/yr for DAPP.

Performance

SMOT vs. DAPP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Morningstar SMID Moat ETF (SMOT) 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, SMOT achieves a 7.85% return, which is significantly lower than DAPP's 10.47% return.

SMOT

• 1D: -0.36%
• 1M: 0.83%
• 6M: 3.89%
• YTD: 7.85%
• 1Y: 10.98%
• 3Y*: 9.60%
• 5Y*: —
• 10Y*: —

DAPP

• 1D: 2.18%
• 1M: -13.38%
• 6M: -9.06%
• YTD: 10.47%
• 1Y: 0.38%
• 3Y*: 27.83%
• 5Y*: -0.57%
• 10Y*: —

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

SMOT vs. DAPP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SMOT VanEck Morningstar SMID Moat ETF	7.85%	6.46%	10.71%	17.31%	3.85%
DAPP VanEck Digital Transformation ETF	10.47%	15.03%	44.87%	285.02%	-50.46%

Correlation

The correlation between SMOT and DAPP is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (All Time) Calculated using the full available price history since Oct 6, 2022	0.50

The correlation between SMOT and DAPP shifts across timeframes, from 0.39 (1 year) to 0.50 (all time), reflecting how their relationship changes across market environments.

SMOT vs. DAPP - Sectors Allocation Comparison

Sectors	SMOT	DAPP
Healthcare	23.4%	-
Consumer Cyclical	15.1%	2.5%
Industrials	14.5%	-
Technology	11.0%	34.7%
Consumer Defensive	10.6%	-
Basic Materials	9.1%	-
Financial Services	7.9%	62.8%
Communication Services	3.3%	-
Real Estate	2.3%	-
Energy	1.7%	-
Utilities	0.7%	-

Return for Risk

SMOT vs. DAPP — Risk / Return Rank

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

SMOT

SMOT Risk / Return Rank: 28
SMOT Sharpe Ratio Rank: 26
SMOT Sortino Ratio Rank: 27
SMOT Omega Ratio Rank: 24
SMOT Calmar Ratio Rank: 30
SMOT Martin Ratio Rank: 33

DAPP

DAPP Risk / Return Rank: 11
DAPP Sharpe Ratio Rank: 9
DAPP Sortino Ratio Rank: 12
DAPP Omega Ratio Rank: 12
DAPP Calmar Ratio Rank: 9
DAPP Martin Ratio Rank: 9

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.

SMOT vs. DAPP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Morningstar SMID Moat ETF (SMOT) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SMOT	DAPP	Difference
Sharpe ratio: Return per unit of total volatility	0.78	0.01	+0.77
Sortino ratio: Return per unit of downside risk	1.24	0.46	+0.79
Omega ratio: Gain probability vs. loss probability	1.14	1.05	+0.09
Calmar ratio: Return relative to maximum drawdown	1.24	0.01	+1.23
Martin ratio: Return relative to average drawdown	3.95	0.01	+3.94

SMOT vs. DAPP - Sharpe Ratio Comparison

The current SMOT Sharpe Ratio is 0.78, which is higher than the DAPP Sharpe Ratio of 0.01. The chart below compares the historical Sharpe Ratios of SMOT 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.

Drawdowns

SMOT vs. DAPP - Drawdown Comparison

The maximum SMOT drawdown since its inception was -23.36%, smaller than the maximum DAPP drawdown of -92.61%. Use the drawdown chart below to compare losses from any high point for SMOT and DAPP.

Drawdown Indicators

	SMOT	DAPP	Difference
Max Drawdown Largest peak-to-trough decline	-23.36%	-92.61%	+69.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.91%	-48.21%	+39.30%
Max Drawdown (3Y) Largest decline over 3 years	-23.36%	-58.88%	+35.52%
Max Drawdown (5Y) Largest decline over 5 years	—	-91.90%	—
Current Drawdown Current decline from peak	-1.19%	-44.76%	+43.57%
Average Drawdown Average peak-to-trough decline	-4.73%	-60.94%	+56.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.79%	25.86%	-23.07%

Volatility

SMOT vs. DAPP - Volatility Comparison

The current volatility for VanEck Morningstar SMID Moat ETF (SMOT) is 3.70%, while VanEck Digital Transformation ETF (DAPP) has a volatility of 13.98%. This indicates that SMOT 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

	SMOT	DAPP	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.70%	13.98%	-10.28%
Volatility (6M) Calculated over the trailing 6-month period	10.01%	45.92%	-35.91%
Volatility (1Y) Calculated over the trailing 1-year period	14.13%	62.45%	-48.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.34%	73.16%	-54.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.34%	72.59%	-54.25%

SMOT vs. DAPP - Expense Ratio Comparison

SMOT has a 0.49% expense ratio, which is lower than DAPP's 0.52% expense ratio.

Dividends

SMOT vs. DAPP - Dividend Comparison

SMOT's dividend yield for the trailing twelve months is around 1.27%, while DAPP has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021
DAPP VanEck Digital Transformation ETF	0.00%	0.00%	4.04%	0.00%	0.00%	10.13%
SMOT VanEck Morningstar SMID Moat ETF	1.27%	1.37%	1.18%	0.65%	0.24%	0.00%

Frequently Asked Questions

Can I hold both SMOT and DAPP in my portfolio?

SMOT and DAPP have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMOT or DAPP?

DAPP has higher volatility (13.98%) compared to SMOT (3.70%). In terms of maximum drawdown, SMOT dropped -23.36% vs DAPP's -92.61%.

Which ETF is better, SMOT or DAPP?

On 3-year performance, DAPP leads with 27.83% vs 9.60% for SMOT. On fees, SMOT is cheaper at 0.49% per year. On volatility, SMOT has been the lower-risk option at 3.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMOT or DAPP?

Over the 3-year period, DAPP has performed better with a 27.83% return vs 9.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMOT or DAPP?

SMOT is cheaper with a 0.49% expense ratio, compared with 0.52% for DAPP.

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

SMOT has the higher dividend yield at 1.27%, compared with 0.00% for DAPP.

What is the main difference between SMOT and DAPP?

SMOT is categorized as Mid Cap Blend Equities, while DAPP is Blockchain. SMOT tracks Morningstar US Small-Mid Cap Moat Focus, while DAPP tracks MVIS Global Digital Assets Equity Index. Their fees differ too: 0.49% for SMOT and 0.52% for DAPP.

Which has better risk-adjusted returns?

SMOT currently has the higher Sharpe Ratio (0.78 vs 0.01), 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.