DAPP - DAPP: An Overvalued Portfolio
2024-03-19 06:01:09 ET
Summary
- The VanEck Digital Transformation ETF was formed in 2021.
- The Fund has experienced significant volatility and losses since its inception.
- The Fund is not recommended for investment due to its concentrated exposure to overpriced companies, and companies with poor business models.
Introduction
The VanEck Digital Transformation ETF ( DAPP ) (the " Fund ") began trading on April 12, 2021. Its timing could not have been much worse. The crypto bear market started in earnest in the fall of 2021, causing the Fund to fall more than 40% in 2021. That large decline was followed by a further decline in 2022 of over 85% . See the charts below, which also compare this exchange-traded fund (" ETF ") against the S&P 500 and Bitcoin ( BTC-USD ) (" Bitcoin ") for 2021 and 2022, respectively....
DAPP: An Overvalued Portfolio