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Is ALPS International Sector Dividend Dogs ETF (IDOG) a Strong ETF Right Now?
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The ALPS International Sector Dividend Dogs ETF (IDOG - Free Report) made its debut on 06/28/2013, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $208.39 million, this makes it one of the average sized ETFs in the World ETFs. IDOG is managed by Alps. IDOG, before fees and expenses, seeks to match the performance of the S-Network International Sector Dividend Dogs Index.
The S-Network International Sector Dividend Dogs Index identifies five high yielding securities, based on regular cash dividends, in each of the ten Global Industry Classification Standard sectors and is rebalanced quarterly.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.50% for IDOG, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.07%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, H & M Hennes & Mauritz Ab (HMB) accounts for about 2.32% of the fund's total assets, followed by Sanofi (SAN - Free Report) and Fresenius Medical Care Ag & Co. Kgaa (FME).
The top 10 holdings account for about 21.49% of total assets under management.
Performance and Risk
Year-to-date, the ALPS International Sector Dividend Dogs ETF has added roughly 10.62% so far, and it's up approximately 1.98% over the last 12 months (as of 06/07/2023). IDOG has traded between $21.31 and $28.80 in this past 52-week period.
IDOG has a beta of 0.83 and standard deviation of 17.66% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS International Sector Dividend Dogs ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $56.59 billion in assets, Vanguard FTSE Developed Markets ETF has $112.43 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is ALPS International Sector Dividend Dogs ETF (IDOG) a Strong ETF Right Now?
The ALPS International Sector Dividend Dogs ETF (IDOG - Free Report) made its debut on 06/28/2013, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $208.39 million, this makes it one of the average sized ETFs in the World ETFs. IDOG is managed by Alps. IDOG, before fees and expenses, seeks to match the performance of the S-Network International Sector Dividend Dogs Index.
The S-Network International Sector Dividend Dogs Index identifies five high yielding securities, based on regular cash dividends, in each of the ten Global Industry Classification Standard sectors and is rebalanced quarterly.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.50% for IDOG, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.07%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, H & M Hennes & Mauritz Ab (HMB) accounts for about 2.32% of the fund's total assets, followed by Sanofi (SAN - Free Report) and Fresenius Medical Care Ag & Co. Kgaa (FME).
The top 10 holdings account for about 21.49% of total assets under management.
Performance and Risk
Year-to-date, the ALPS International Sector Dividend Dogs ETF has added roughly 10.62% so far, and it's up approximately 1.98% over the last 12 months (as of 06/07/2023). IDOG has traded between $21.31 and $28.80 in this past 52-week period.
IDOG has a beta of 0.83 and standard deviation of 17.66% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 52 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS International Sector Dividend Dogs ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $56.59 billion in assets, Vanguard FTSE Developed Markets ETF has $112.43 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.