SS&C ALPS Advisors has lowered the fees on its popular dividend value ETF.
The ALPS Sector Dividend Dogs ETF (SDOG ) reduced its expense ratio to 36 basis points from 40 basis points, effective April 1. SDOG is a deep-value portfolio of high-yielding large-cap stocks.
The fee cut comes at a time when dividend value stocks have primarily led large cap returns since the value rotation began in September 2020. Value ETFs offering generous dividend income have surged in popularity as investors look to offset the elevated rate of inflation.
The fee cut places SDOG in the same price range as competitors SPDR S&P Dividend ETF (SDY ) and iShares Select Dividend ETF (DVY ). SDY and DVY charge 35 basis points and 38 basis points, respectively.
SDOG’s dividends have contributed to nearly 53% of the fund’s overall return since its inception, according to ALPS. SDOG is outpacing both SDY and DVY year to date as of March 31.
SDOG has outperformed SDY since the beginning of the value rotation, with SDOG returning 45.8% compared to SDY’s 38.3% gain.
SDOG has $1.2 billion in assets under management and has taken in nearly $100 million in net flows over a one-year period.
SDOG applies the ‘Dogs of the Dow Theory’ on a sector-by-sector basis using the S-Network US Equity WR Large-Cap 500 Index as its starting universe of eligible securities. The fund provides equal weight exposure to the five highest-yielding stocks in ten sectors across the 500 largest companies in the US.
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