Of course, investors can take a more tactical approach to Dogs of the Dow with sector ETFs. For example, the Vanguard Telecommunication Services ETF (NYSEArca: VOX) allocated over 44% of its combined weight to AT&T and Verizon at the end of November. Vanguard recently lowered the annual fee on VOX to 0.12%, putting the fund into a tie with the Fidelity MSCI Telecommunication Services Index ETF (NYSEArca: FCOM) as the least expensive telecommunications ETF. [Vanguard Cuts Sector ETF Fees]
The Energy Select Sector SPDR (NYSEArca: XLE) devotes over 30% of its combined weight to Exxon and Chevron. Although it was the worst performer of the nine sector SPDRs in 2014 and the only one to finish with a yearly loss, XLE added over $5 billion in assets last year, a total surpassed by just nine other ETFs.
As for DIA, the Dow ETF’s combined weight to the dogs is 19.1%.
ALPS Sector Dividend Dogs ETF