ETF Spotlight on the ALPS Sector Dividend Dogs ETF (NYSEArca: SDOG), part of an ongoing series.
Assets: $831.6 million
Objective: The ALPS Sector Dividend Dogs ETF tries to reflect the performance of the S-Network Sector Dividend Dogs Index, which applies the “Dogs of the Dow Theory” on a sector-by-sector basis using the S&P 500 with a focus on high dividend exposure.
Holdings: Top holdings include Du Pont (NYSE: DD) 2.2%, Darden Restaurants (NYSE: DRI) 2.2%, Altria Group (NYSE: MO) 2.1%, Paychex (NYSE: PAYX) 2.1% and Exelon (NYSE: EXC) 2.0%.
What You Should Know:
- ALPS Funds sponsors the ETF.
- SDOG has a 0.40% expense ratio.
- The ETF has 50 holdings and the top ten make up 22.4% of the overall portfolio.
- Sector allocations include basic materials 10.2%, consumer discretionary 5.7%, financials 9.8%, telecom 12.7%, energy 10.2%, industrials 12.1%, tech 10.1%, consumer defensive 9.6%, healthcare 10.0% and utilities 9.6%.
- Market capitalization weights include mega-caps 25.5%, large-caps 36.6% and mid-caps 37.9%.
- The fund’s portfolio also shows a 18.4 price-to-earnings ratio and a 2.1 price-to-book.
- SDOG has a 3.21% trailing 12-month yield.
- The fund is up 0.2% over the past month, up 2% over past three months and up 12.6% year-to-date.
- The ETF focuses on high-dividend exposure across all 10 sectors of the S&P 500, selecting the five highest yielding securities in each sector and equally weighting the holdings.
- Holdings are rebalanced quarterly in an effort to keep sector weights in the area of 10% and individual holdings at 2%.
- The Dogs of the Dow strategy is based on buying the 10 Dow Jones Industrial Average stocks with the highest dividends at the start of every year.
- By picking the highest yielding stocks, the fund aims to provide potential price appreciation as market forces bring yields back to in line with the performance of the overall market.
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