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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 Broad Developed 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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
The fund is sponsored by Alps. It has amassed assets over $250.07 million, making it one of the average sized ETFs in the Broad Developed World ETFs. This particular fund seeks to match the performance of the S-Network International Sector Dividend Dogs Index before fees and expenses.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.50%.
It's 12-month trailing dividend yield comes in at 4.88%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 2.38% of the fund's total assets, followed by Stellantis Nv (STLAMMI2) and Israel Chemicals Ltd. (ICL - Free Report) .
IDOG's top 10 holdings account for about 21.84% of its total assets under management.
Performance and Risk
The ETF has lost about -0.34% so far this year and was up about 22.63% in the last one year (as of 01/03/2024). In the past 52-week period, it has traded between $25.84 and $30.04.
IDOG has a beta of 0.87 and standard deviation of 15.85% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS International Sector Dividend Dogs ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could 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 $61.54 billion in assets, Vanguard FTSE Developed Markets ETF has $119.56 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 Broad Developed 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 Broad Developed 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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
The fund is sponsored by Alps. It has amassed assets over $250.07 million, making it one of the average sized ETFs in the Broad Developed World ETFs. This particular fund seeks to match the performance of the S-Network International Sector Dividend Dogs Index before fees and expenses.
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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.50%.
It's 12-month trailing dividend yield comes in at 4.88%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 2.38% of the fund's total assets, followed by Stellantis Nv (STLAMMI2) and Israel Chemicals Ltd. (ICL - Free Report) .
IDOG's top 10 holdings account for about 21.84% of its total assets under management.
Performance and Risk
The ETF has lost about -0.34% so far this year and was up about 22.63% in the last one year (as of 01/03/2024). In the past 52-week period, it has traded between $25.84 and $30.04.
IDOG has a beta of 0.87 and standard deviation of 15.85% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS International Sector Dividend Dogs ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could 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 $61.54 billion in assets, Vanguard FTSE Developed Markets ETF has $119.56 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 Broad Developed 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.