The investment of the ALPS Sector Dividend Dogs exchange traded fund (NYSE: SDOG – $42.62) seeks investment results that closely replicates, before fees and expenses, the performance of the S-Network-Sector Dividend Dogs Index. The underlying index generally consists of 50 stocks on each annual reconstitution date, which is the third Friday of December each year. The underlying index’s stocks must be constituents of the S&P 500 Index. The underlying index methodology selects the five stocks in each of the ten GICS sectors that make up the S&P 500 which offer the highest dividend yields as of the last business day of November. As of the management’s latest filing, the composition of $2 billion asset fund is as follows: 68% of the portfolio consists of large-cap stocks and 32% mid-cap. As required by the index, the sector allocations are primarily equally weighted –
The top ten holdings as of December 2018 are –
The ETF pays an above-average dividend of about $0.37 quarterly, yielding 3.7% at current levels. The funds net expense ratio is 0.40%. Positions in SDOG can be considered for conservative income investors.