Diversify Abroad Via Dividend Investing in IDOG ETF

With domestic uncertainty rising, more investors may be considering foreign diversification. Potential tariffs and other government policies could potentially throw markets should they hit full strength. Valuations, including those of the so-called Magnificent Seven firms, remain at historically high levels. That creates notable concentration risk given their outsized representation in key indexes. Those risk factors together may speak to the merit of diversifying abroad via an international equities ETF like IDOG.

See more: Get a Global View of Internet Tech Stocks With OGIG

The ALPS International Sector Dividend Dogs ETF (IDOG) tracks an index including the five firms from each of the 10 GICS sectors in international markets. That approach helps the fund craft a broad, multisector ex-U.S. equity allocation. The international equities ETF applies a variant of the “Dogs of the Dow” theory to that global stock universe. The fund takes the five highest-yielding stocks from each of the 10 sectors. Together, that crafts a portfolio of 50 firms with high dividends.

Look to Dividends as a Guide in International Equities ETF IDOG

That dividend approach can help IDOG beat its rival firms when it comes to foreign investing. By looking at dividend data, the strategy can get a different view into a firm’s outlook than just by assessing profit or earnings. Dividends often provide a notable indication of how a company’s internal outlook.

The international equities ETF holds a variety of foreign firms that can buoy a portfolio and help it meet its goals. Growthier, tech-focused firms like Sanofi (SNY) as well as sturdy financials like BNP Paribas (BNP) both make the cut in IDOG.

Together, that approach has helped the fund return 6% over the last three years, per SS&C ALPS Advisors data as of December 31. That significantly outperformed the Morningstar Developed Markets ex-North America Index, which returned less than 1% in that time. Overall, IDOG is a robust ex-U.S. international equities ETF. Relying on dividends as a guide, it can find strong opportunities even in markets in which investors may have less information.