The ALPS Sector Dividend Dogs ETF (NYSEArca: SDOG) is up 31.4% in 2013. SDOG basically applies the “Dogs of the Dow” theory to S&P sectors, buying five highest-yielding stocks in each of the S&P 500 index’s 10 sectors. SDOG caps sector weights at 10% and individual holdings weights at 2%. The trailing 12-month yield on SDOG’s underlying index is 4.22%, according to issuer data.
The FlexShares Quality Dividend Dynamic Index Fund (NYSEArca: QDYN) is higher by 30.2% on the year and represents another valid option for income investors looking for insulation from rising rates as it has a mere 9% weight to utilities and telecom names.
QDYN’s holdings “are selected based on expected dividend payment and fundamental factors such as profitability, solid management, and reliable cash flow,” according to FlexShares.
Chart Courtesy: ETF Replay.
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of SCHD.