ALPS has announced the launch of the ALPS Sector Dividend Dogs ETF (SDOG), an NYSE Arca-listed ETF that applies the ‘Dogs of the Dow’ theory on a sector-by-sector basis using the blue-chip S&P 500 equity index as its starting universe of eligible securities.
The ‘Dogs of Dow’ is an investment strategy which proposes that an investor annually select for investment the ten Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price.
“ALPS is thrilled to add a high-yield large-cap equity income ETF to our suite of portfolio solutions,” said Tom Carter, Executive Vice President of ALPS Holdings. “We believe SDOG offers investors a product with attractive differentiating factors from other large-cap dividend ETFS including higher yield and sector diversification.”
The new ETF tracks the S-Network Sector Dividend Dogs Index (SDOGX), a portfolio of 50 stocks derived from the S&P 500 using the ‘Dogs of Dow’ methodology on a sector-by-sector basis, as mentioned above. SDOGX is rules-based and fully transparent; all 50 index constituents are equally weighted.
Talking at the time of the index’s launch in May, Joseph LaCorte, CEO of S-Network, said: “Sector Dividend Dogs isolates those S&P 500 constituents with the highest dividend yield in their respective sectors with the expectation that pressure exerted by investors will bring their yield into line with the overall market over the ensuing 12 months.”
The fund has an Total Expense Ratio (TER) of 0.40%.