ALPS Emerging Sector Dividend Dogs ETF (EDOG)

ETF ALPS Emerging Sector Dividend Dogs ETF (SDOG)

Profile:

SDOG is an ETF that invests in high dividend-paying stocks from emerging market sectors expected to experience above-average growth. It utilizes a quantitative methodology to select stocks based on factors like free cash flow yield, forward earnings yield, and momentum.

Asset Allocation:

• 100% Equities
• Focus on Emerging Markets

Investment Strategy:

• Dividend Growth
• Sector-focused

Objective:

SDOG aims to provide investors with:

• High Dividend Yield: By investing in stocks with a history of high dividend payouts.
• Capital Appreciation: Through exposure to emerging market sectors with strong growth potential.

Issuer:

ALPS Advisors

Reputation and Reliability:

• ALPS Advisors is a reputable ETF issuer with over $30 billion in assets under management.
• The firm has a strong track record of launching innovative and successful ETFs.

Management:

• Experienced investment team with expertise in quantitative investing and emerging markets.

Market Share:

SDOG has a relatively small market share within the emerging market dividend ETF space.

Total Net Assets:

• $154.49 million (as of November 2023)

Moat:

• Unique Strategy: SDOG's focus on combining high dividend yield with emerging market exposure is relatively unique.
• Quantitative Methodology: The ETF's rules-based approach helps ensure consistent portfolio construction and risk management.

Financial Performance:

Historical Performance:

• Since inception (May 2017), SDOG has delivered a total return of 8.47% (as of November 2023).

Benchmark Comparison:

• SDOG has slightly underperformed the MSCI Emerging Markets Index during this period.

Growth Trajectory:

• Emerging markets are expected to continue to grow in the long term, potentially benefiting SDOG's performance.

Liquidity:

• Average Trading Volume: Approximately 250,000 shares per day.
• Bid-Ask Spread: Tight spread, indicating high liquidity.

Market Dynamics:

• Economic Growth: Strong economic growth in emerging markets can drive SDOG's performance.
• Interest Rates: Rising interest rates can make dividend-paying stocks less attractive.
• Emerging Market Volatility: Emerging markets can be more volatile than developed markets.

Competitors:

• SPDR S&P Emerging Markets Dividend ETF (EDIV)
• iShares Emerging Markets Dividend ETF (DVEM)
• VanEck Emerging Markets Dividend ETF (DVYE)

Expense Ratio:

• 0.42%

Investment Approach and Strategy:

• Strategy: Tracks the S-Network Emerging Sector Dividend Dogs Index.
• Composition: Holds approximately 50 stocks across various emerging market sectors.

Key Points:

• High dividend yield potential.
• Exposure to emerging market growth.
• Actively managed and rules-based approach.
• Relatively small market share.

Risks:

• Market Volatility: Emerging markets can be more volatile than developed markets.
• Dividend Risk: Dividend payments are not guaranteed and can be reduced or eliminated.
• Currency Risk: The ETF is exposed to currency fluctuations.

Who Should Consider Investing:

• Investors seeking high dividend income with exposure to emerging markets.
• Investors with a long-term investment horizon.
• Investors comfortable with higher volatility.

Fundamental Rating Based on AI:

7/10

Justification: SDOG has a solid investment strategy, experienced management, and competitive expense ratio. However, its relatively small market share and recent underperformance compared to its benchmark are drawbacks. The future growth potential of emerging markets and the ETF's high dividend yield remain attractive features.

Resources and Disclaimers:

• ALPS ETF Website: https://www.alpsfunds.com/etfs/equity/s-network-emerging-sector-dividend-dogs-etf-s-dog/
• Yahoo Finance: https://finance.yahoo.com/quote/SDOG/
• Morningstar: https://www.morningstar.com/etfs/xnas/s-dog

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.