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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 Foreign Large Value ETF category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

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.

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.

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 $300.93 million, which makes it one of the average sized ETFs in the Foreign Large Value ETF. IDOG 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

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 this ETF, which makes it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 4.35%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

When you look at individual holdings, Sanofi Sa (SAN - Free Report) accounts for about 2.22% of the fund's total assets, followed by Cap Gemini Sa and Bnp Paribas Sa (BNP).

Its top 10 holdings account for approximately 21.53% of IDOG's total assets under management.

Performance and Risk

The ETF has gained about 12.71% so far this year and is up about 15.65% in the last one year (as of 03/17/2025). In the past 52-week period, it has traded between $28.25 and $32.87.

IDOG has a beta of 0.80 and standard deviation of 15.61% 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 not a suitable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. Instead, there are other ETFs in the space which investors should consider.

Dimensional International Value ETF (DFIV - Free Report) tracks ---------------------------------------- and the Schwab Fundamental International Equity ETF (FNDF - Free Report) tracks Russell RAFI Developed ex US Large Co. Index (Net). Dimensional International Value ETF has $9.43 billion in assets, Schwab Fundamental International Equity ETF has $14.60 billion. DFIV has an expense ratio of 0.27% and FNDF charges 0.25%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF.

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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