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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) was launched on 06/28/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Alps, and has been able to amass over $204.08 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, this particular fund 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.
Annual operating expenses for IDOG are 0.50%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.06%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Koninklijke Philips Nv (PHIA) accounts for about 2.27% of the fund's total assets, followed by Nippon Steel Corp. And Erste Group Bank Ag (EBS - Free Report) .
IDOG's top 10 holdings account for about 21.57% of its total assets under management.
Performance and Risk
Year-to-date, the ALPS International Sector Dividend Dogs ETF return is roughly 10.90% so far, and it's up approximately 3.13% over the last 12 months (as of 04/07/2023). IDOG has traded between $21.31 and $28.65 in this past 52-week period.
The fund has a beta of 0.83 and standard deviation of 19.09% for the trailing three-year period, which makes IDOG a medium risk choice in this particular space. With about 51 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 Broad Developed 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 $54.72 billion in assets, Vanguard FTSE Developed Markets ETF has $109.63 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) was launched on 06/28/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Alps, and has been able to amass over $204.08 million, which makes it one of the average sized ETFs in the Broad Developed World ETFs. Before fees and expenses, this particular fund 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.
Annual operating expenses for IDOG are 0.50%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.06%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Koninklijke Philips Nv (PHIA) accounts for about 2.27% of the fund's total assets, followed by Nippon Steel Corp. And Erste Group Bank Ag (EBS - Free Report) .
IDOG's top 10 holdings account for about 21.57% of its total assets under management.
Performance and Risk
Year-to-date, the ALPS International Sector Dividend Dogs ETF return is roughly 10.90% so far, and it's up approximately 3.13% over the last 12 months (as of 04/07/2023). IDOG has traded between $21.31 and $28.65 in this past 52-week period.
The fund has a beta of 0.83 and standard deviation of 19.09% for the trailing three-year period, which makes IDOG a medium risk choice in this particular space. With about 51 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 Broad Developed 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 $54.72 billion in assets, Vanguard FTSE Developed Markets ETF has $109.63 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.