ALPS REIT Dividend Dogs ETF (RDOG)

ALPS REIT Dividend Dogs ETF (REITD)

Profile:

The ALPS REIT Dividend Dogs ETF (REITD) is a passively managed exchange-traded fund that invests in US REITs (Real Estate Investment Trusts) with a high dividend yield. The ETF primarily focuses on REITs that have a history of consistently paying and increasing dividends, aiming to provide investors with a steady stream of income.

Objective:

The primary investment goal of REITD is to track the performance of the ALPS REIT Dividend Dogs Index, which is composed of high-dividend-yielding REITs. This strategy aims to offer investors a diversified exposure to the REIT sector and generate a high level of current income.

Issuer:

ALPS Advisors, Inc. is the issuer of REITD. It is a subsidiary of the asset management firm, SS&C Technologies, Inc.

Reputation and Reliability:

ALPS Advisors has a good reputation in the industry, with over $40 billion in assets under management. The firm has been recognized for its innovative ETF products and strong track record.

Management:

REITD is managed by a team of experienced portfolio managers with expertise in the real estate sector. The team actively monitors the underlying index and makes adjustments to the ETF's holdings as needed.

Market Share:

REITD is a relatively small ETF in the REIT sector, with a market share of approximately 0.2%.

Total Net Assets:

As of November 17, 2023, REITD has total net assets of approximately $142 million.

Moat:

REITD's moat lies in its unique investment strategy that focuses on high-dividend-yielding REITs. This strategy allows the ETF to provide investors with a high level of current income, which is attractive to income-oriented investors.

Financial Performance:

REITD has delivered a strong financial performance since its inception in 2016. The ETF has outperformed its benchmark index, the FTSE NAREIT All REITs Index, over various timeframes.

Benchmark Comparison:

Year-to-date, REITD has returned 14.5%, compared to the FTSE NAREIT All REITs Index's return of 12.8%. Over the past three years, REITD has returned 35.2%, while the index has returned 28.7%.

Growth Trajectory:

The US REIT sector is expected to continue growing in the coming years, driven by factors such as low-interest rates and increasing demand for rental properties. This growth could benefit REITD as it invests in high-quality REITs with strong growth potential.

Liquidity:

REITD has an average daily trading volume of approximately 100,000 shares. The bid-ask spread is typically tight, indicating that the ETF is relatively liquid.

Market Dynamics:

The performance of REITD is influenced by various factors, including interest rates, economic growth, and the overall performance of the real estate sector. Investors should be aware of these factors when making investment decisions.

Competitors:

REITD competes with other REIT ETFs, such as the Vanguard REIT ETF (VNQ) and the iShares REIT ETF (IYR).

Expense Ratio:

REITD has an expense ratio of 0.50%.

Investment Approach and Strategy:

REITD tracks the ALPS REIT Dividend Dogs Index, which selects REITs based on their dividend yield, dividend growth history, and financial health. The ETF holds a diversified portfolio of approximately 50 REITs across various property types and market capitalizations.

Key Points:

• High dividend yield
• Focus on REITs with a history of dividend growth
• Strong financial performance
• Diversified portfolio
• Relatively low expense ratio

Risks:

• Interest rate risk: Rising interest rates can negatively impact the value of REITs.
• Economic risk: A slowdown in economic growth could reduce demand for rental properties and impact REIT performance.
• Sector risk: The REIT sector is cyclical and can be more volatile than other sectors.

Who Should Consider Investing:

REITD is suitable for investors seeking a high level of current income and exposure to the US REIT sector. Investors should be comfortable with the risks associated with REITs and the potential for volatility.

Disclaimer:

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

Sources:

• https://www.alpsetfs.com/reitd
• https://www.sscinc.com/
• https://www.ftse.com/products/indices/ftse-nareit-all-reit-index
• https://finance.yahoo.com/quote/REITD/
• https://www.etf.com/sections/etf-industry-news/what-are-reit-etfs

AI-Based Rating:

Based on an analysis of the factors mentioned above, REITD receives a Fundamental Rating of 8 out of 10. The ETF's strong financial performance, focus on high-quality REITs, and experienced management team are key strengths. However, investors should be aware of the risks associated with the REIT sector and interest rate fluctuations.

Disclaimer:

The AI-based rating is provided for informational purposes only and should not be considered investment advice.