Sometimes where you invest matters more than how you invest, and two dividend dogs funds from ALPS highlight the trend.
The ALPS International Sector Dividend Dogs ETF (IDOG) gained 33.4% year-to-date through November 2, far outpacing the 7.8% return from its domestic twin, the ALPS Sector Dividend Dogs ETF (SDOG), according to ETF Database data. Both funds hunt for high dividend payers using the same strategy. The only difference is that IDOG invests overseas while SDOG stays home.
The performance gap shows how geographic exposure can reshape results even when the investment approach stays the same. Both funds pick the five highest-yielding stocks from each of the 10 market sectors and weigh everything equally. However, IDOG focuses on international developed markets, while SDOG sticks to the domestic S&P 500, according to ETF Database.
The divide extends beyond this year. IDOG returned 27.3% over the past 12 months compared to SDOG’s 5.2%, the data shows.
Investors are voting with their dollars. IDOG pulled in $46.65 million over the past year, while SDOG lost $10.48 million, according to ETF Database data. The three-month window shows a similar pattern, with IDOG attracting $25.18 million against SDOG’s $7.64 million, per ETF Database.
The outflows from SDOG reflect a longer-term trend. Growth stocks have driven U.S. market gains for years, making dividend-focused strategies less appealing to investors chasing higher returns. But the fund’s approach could draw more attention if market leadership shifts away from the growth stocks that have dominated the past decade.
How The Strategy Works
Both funds spread their bets evenly across sectors, avoiding the heavy tilt toward utilities and banks that weighs down many dividend funds.
SDOG owns U.S. names like Seagate Technology Holdings PLC (STX), International Business Machines Corporation (IBM), and United Parcel Service, Inc. (UPS) among its top holdings, ETF Database shows.
IDOG takes a similar approach abroad, with top positions including Nokia Oyj, Telefonaktiebolaget LM Ericsson, and Fortum Oyj, per the data.
The international version costs more — 0.50% — compared to SDOG’s 0.36% expense ratio, ETF Database data shows.
Over longer periods, IDOG has continued to outperform, with a three-year annualized return of 22.9% and five-year return of 17.3%. SDOG posted 9.8% and 13.6% over those same stretches, respectively, according to the data.
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