ALPS, the fund marketing company and ETF sponsor, filed regulatory paperwork to market a payout-focused equities fund comprising the highest-paying non-U.S. dividend stocks—including possibly emerging markets—in an international follow-up to the U.S.-centered “Dividend Dogs” fund it launched last summer.
The ALPS International Sector Dividend Dogs ETF will skim the top-dividend-paying stocks in each sector of the Global Industry Classification Standard, selecting the five-highest-paying dividend stocks from each GICS sector, the filing with the Securities and Exchange Commission said. It will trade with the ticker “IDOG,” according to the prospectus.
The fund will target stocks from what “S-Network EAFE” countries in Europe, Australia and the Far East that are located outside of North America and that have stock exchanges and meet the World Bank’s per-capita gross national income to be designated a “high income” country. This designation doesn’t necessarily denote a country’s development status, and the fund could therefore potentially hold some stocks from countries considered to be emerging markets, the filing said.
This filing comes after the Denver-based issuer’s June 2012 launch of the ALPS Sector Dividend Dogs ETF (SDOG) fund which, according to a blog by IndexUniverse ETF analyst Paul Baiocchi, provides investors with “comprehensive economic cycle exposure—all with the bonus of holding the highest-yielding firms,” within the sectors to which it allocates.
IDOG will work toward that same end, snagging the top-five-highest-paying securities across the GICS sectors to create an equally weighted 50-security basket. To maintain what Baiocchi calls “comprehensive economic exposure,” the fund index will reconstitute annually in December, reselecting stocks if necessary based on their dividend payouts as of the last trading day of November. It will rebalance quarterly.
ALPS hasn’t tagged a price on IDOG yet, but SDOG, the U.S.-focused strategy, costs 40 basis points a year, or $40 for each $10,000 invested. SDOG has gathered $134 million since inception.
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