The ALPS International Sector Dividend Dogs ETF (IDOG) made its debut on 06/28/2013, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Value ETF category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Alps, IDOG has amassed assets over $326.17 million, making it one of the average sized ETFs in the Foreign Large Value ETF. Before fees and expenses, IDOG seeks to match the performance of the S-Network International Sector Dividend Dogs Index.
The S-Network International Sector Dividend Dogs Index identifies five high yielding securities, based on regular cash dividends, in each of the ten Global Industry Classification Standard sectors and is rebalanced quarterly.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.50% for IDOG, making it on par with most peer products in the space.
IDOG's 12-month trailing dividend yield is 4.54%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Japan Tobacco Inc. Accounts for about 2.36% of total assets, followed by Singapore Telecommunications Ltd. (ST) and Imperial Brands Plc (IMB).
IDOG's top 10 holdings account for about 22.12% of its total assets under management.
Performance and Risk
So far this year, IDOG has gained about 17.12%, and is up roughly 10.27% in the last one year (as of 05/20/2025). During this past 52-week period, the fund has traded between $28.25 and $33.50.
The ETF has a beta of 0.72 and standard deviation of 16.22% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS International Sector Dividend Dogs ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional International Value ETF (DFIV) tracks ---------------------------------------- and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Dimensional International Value ETF has $11.36 billion in assets, Schwab Fundamental International Equity ETF has $15.70 billion. DFIV has an expense ratio of 0.27% and FNDF charges 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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ALPS International Sector Dividend Dogs ETF (IDOG): ETF Research Reports Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report Schwab Fundamental International Equity ETF (FNDF): ETF Research Reports Dimensional International Value ETF (DFIV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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