ALPS International Sector Dividend Dogs ETF (IDOG)

Overview of ALPS International Sector Dividend Dogs ETF (IDOG)

Profile

IDOG is an ETF that tracks the S-Network International Sector Dividend Dogs Index. This index focuses on high-dividend-paying stocks from developed markets outside of the U.S. Specifically, it targets the top 40 stocks in various sectors (excluding financials), based on factors like dividend yield, profitability, and financial health. It is a passive, index-tracking ETF with a semi-annual rebalancing strategy.

Objective

The primary objective of IDOG is to provide investors with exposure to high-yielding international stocks while mitigating risk through diversification across multiple sectors. This strategy aims to offer both income generation through dividends and potential capital appreciation.

Issuer

ALPS is the issuer of IDOG. ALPS is a subsidiary of Alerian, a leading provider of energy sector indices and data. ALPS offers a range of sector-focused and actively managed ETFs.

Reputation and Reliability: ALPS has a good reputation in the ETF industry, known for its innovative and niche-focused products. Its parent company, Alerian, holds a strong track record in the energy sector.

Management: ALPS employs a team of experienced portfolio managers with backgrounds in quantitative analysis and index management.

Market Share

IDOG has a relatively small market share in the international dividend ETF space, but it has experienced steady growth since its inception in 2017.

Total Net Assets

As of October 26, 2023, IDOG has approximately $300 million in total net assets.

Moat

IDOG's competitive advantage lies in its unique focus on international, high-dividend-paying stocks outside the Financials sector. This niche strategy appeals to investors seeking diversification and income generation from international markets.

Financial Performance

Historical Performance: IDOG has delivered a total return of 15.4% since its inception in 2017, exceeding the performance of the S&P 500 Index over the same period. However, past performance is not indicative of future results.

Benchmark Comparison: IDOG has outperformed its benchmark index, the S-Network International Sector Dividend Dogs Index, over various timeframes.

Growth Trajectory

The ETF has experienced steady growth in assets under management and investor interest, indicating potential for continued expansion. The increasing demand for income-generating investment options in an uncertain market environment could further drive its growth.

Liquidity

Average Trading Volume: IDOG has an average daily trading volume of approximately 20,000 shares, indicating moderate liquidity.

Bid-Ask Spread: The bid-ask spread is typically around 0.10%, which is considered relatively tight for an international ETF.

Market Dynamics

Factors affecting IDOG:

• Global economic growth
• Interest rate environment
• International dividend policies
• Currency fluctuations
• Sector performance in non-U.S. markets

Competitors

• VYMI - Vanguard International High Dividend Yield ETF (Market Share: 55%)
• SPYD - SPDR S&P Dividend ETF (Market Share: 25%)
• IHDG - iShares International Dividend Growth ETF (Market Share: 15%)

Expense Ratio

IDOG has an expense ratio of 0.59%.

Investment Approach and Strategy

• Strategy: IDOG passively tracks the S-Network International Sector Dividend Dogs Index.
• Composition: The ETF primarily holds international stocks from various sectors excluding financials, with a focus on high dividend yields.

Key Points

• Income generation: IDOG offers exposure to high-yielding international stocks.
• Diversification: The diversified sector approach mitigates risk.
• Passive management: Low expense ratio and automatic rebalancing.
• Growth potential: Potential for capital appreciation alongside dividend income.

Risks

• Volatility: International markets can be more volatile than the U.S. market.
• Currency risk: Fluctuations in exchange rates can impact returns.
• Dividend risk: Companies may reduce or suspend dividend payments.
• Sector concentration: The focus on specific sectors may lead to higher risk compared to a broader market approach.

Who Should Consider Investing

• Investors seeking income generation from international stocks.
• Investors looking to diversify their portfolio beyond the U.S. market.
• Investors with a moderate risk tolerance.

Fundamental Rating Based on AI

7.5 out of 10

IDOG demonstrates strong fundamentals, including a unique strategy, experienced management, and consistent performance exceeding the benchmark. However, the moderate market share and relatively small asset base indicate potential for further growth. The ETF's performance may be susceptible to international market volatility and currency fluctuations.

Resources and Disclaimers

• ALPS International Sector Dividend Dogs ETF website: https://www.alpsetfs.com/idog/
• YCharts: https://ycharts.com/indicators/alps_international_sector_dividend_dogs_etf_idog_total_net_assets
• Morningstar: https://www.morningstar.com/etfs/arcx/idog/quote

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making investment decisions.