In the ever-growing sea of ETFs, U.S. equities largely dominate. Hundreds of ETFs focus on U.S. firms and their securities. For investors who want to diversify with foreign equities and reduce their exposure to those firms, there are ex-US. ETFs. Ex-US ETFs avoid the U.S. entirely, instead looking for opportunities abroad. In that smaller category, one particular ETF stands out — the ALPS International Sector Dividend Dogs ETF (IDOG).
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The fund launched more than a decade ago, in June 2023. The strategy charges a 50 basis point fee for its approach. IDOG tracks an equal-weighted index of five firms from each of the 10 GICS sectors from international, developed markets. The strategy identifies those five based on which firms have the highest dividend yield.
The Strategy Behind Ex-US ETF IDOG
The fund looks to apply the so-called Dogs of the Dow strategy to a global universe of stocks. That can help the strategy set itself apart from other ex-US ETFs. Dividend trends, assessed via growth in yield or flat payouts, can indicate a firm has a healthy outlook. When looking abroad, a signal like that can be even more impactful. While U.S. investors have plenty of information about domestic securities, similar information is not always available abroad.
Through that above approach, IDOG has largely crafted a portfolio leaning toward Europe and Asia-Pacific. That includes weights toward the U.K., France, Germany, Japan, and Australia as key segments. Per ETF Database holdings analysis, the strategy’s holdings include notables like French company Sanofi (SNY) and Japanese camera multinational Canon (7751).
IDOG’s five-year return of 7.3% lifts it well above the Morningstar Developed Markets ex-North America Index, per SS&C ALPs Advisors data. By equal-weighting sectors, too, it could avoid unforeseen foreign volatility that sometimes occurs overnight for U.S. investors. For those looking to diversify away from the U.S., IDOG may appeal as a leader among ex-US ETFs.
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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.
