SS&C ALPS Advisors offers a compelling ETF that provides exposure to dividend-paying international stocks.
The ALPS International Sector Dividend Dogs ETF (IDOG) applies the “Dogs of the Dow Theory” on a sector-by-sector basis using the S-Network Developed Markets (ex-Americas) Index as its starting universe of eligible securities.
IDOG provides high dividend exposure across 10 sectors of the market by selecting the five highest-yielding securities in each sector and equally weighting them.
The ALPS’ international dividend ETF has seen a jump in investor interest following its recent reconstitution. IDOG’s dividend yield jumped to 6.4% from 6.0% before its quarterly rebalance in mid-December.
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The fund saw an increase in creation activity during the first week of 2024 and has attracted over $7 million in net flows in the weeks following its quarterly rebalance. IDOG has $260 million in assets under management.
IDOG’s increased attention comes as advisors look for international equity income alternatives, Todd Rosenbluth, head of research at VettaFi, said.
“Advisors are looking for equity income alternatives both to fill their U.S. but also their international equity allocations,” he added. “High-dividend-yielding stocks provide more stability during times of potential market volatility.”
Under the Hood of ALPS’ International Dividend ETF
IDOG’s deep-value methodology focuses on cheaper, high-yielding companies. As of the end of September 2023, IDOG provides the greatest exposure to Japan (18.2%), France (16.0%), the United Kingdom (9.8%), Australia (8.4%), and Germany (6.0%), according to the fund’s website.
IDOG was notably among ALPS’ top-performing ETFs in 2023.
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VettaFi LLC (“VettaFi”) is the index provider for IDOG, for which it receives an index licensing fee. However, IDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of IDOG.
