SDOG ETF

The ALPS Sector Dividend Dogs ETF implements a 'Dogs of the Dow' strategy on a sector-by-sector basis. Despite a strong 35.4% return in the past year, SDOG's long-term performance lags behind peers like RSP, EQL, and SPY. Although SDOG offers an attractive 3.7% distribution yield, I believe investors can get superior distribution yields and total returns elsewhere.

On the lookout for a strategy to pair with the growth-heavy S&P 500? The index has presented some strong returns for investors YTD, yes.

SDOG is an equal-weight-by-sector large-cap ETF with a 3.76% expected dividend yield. Despite my recent cautionary note, SDOG has outpaced SPY by 3.69% over the last three months. Still, other high-dividend ETFs performed well over this period, including SCHD, DHS, SPYD, and to a lesser extent, DIV. My analysis compares SDOG fundamentally with all four of these. It reveals that SPYD's quality features, though improved from May, could still be lacking, leaving shareholders vulnerable in a market downturn. Its primary advantage is a 13.50x forward P/E.

With three-year Treasury yields hovering around 3.9% as of Aug. 9, it may not be surprising that, by some estimates, there's $6.5 trillion sitting in money market accounts. Due to high interest rates, cash instruments are more appealing than they've been in years.

Looking to make some portfolio changes following the past week's market tumult? ETFs can appeal as a flexible, transparent wrapper for all sorts of investment strategies.

TIME's Dividend Kings List of 2024 includes an elite group of stocks that have been increasing their dividends over at least a 50-year time span. A few of those are part of the top 10 holdings found in the ALPS Sector Dividend Dogs ETF (SDOG).

High-yielding stocks have history on their side. As the S&P 500 continues to climb to new highs, investors needn't worry about a sudden drop in performance.

Targeting stocks with high dividend yields, SDOG ends up accumulating mostly slowly-growing old-economy companies, like those from the tobacco and oil & gas industries. While possibly beneficial amid downturns, it is anything but opportune when enthusiasm returns, as value-heavy portfolios have smaller potential to participate in the bull run. ALPS Sector Dividend Dogs ETF's smart beta strategy also boosts its value profile while detracting from growth.

ALPS Sector Dividend Dogs ETF offers high dividend yield and consistent dividend growth with its unique "Dogs of the Dow Theory" strategy. The SDOG ETF's portfolio is equally weighted, promoting diversification and reducing sector-specific risks. SDOG has underperformed similar ETFs in the past, but may be worth considering for investors seeking high dividends and mean reversion opportunities.