With markets seeing a serious sell-off last week, many investors may be looking for options. At the same time, getting out of equities may not be an option for all investors. For those near retirement, in particular, preserving capital matters, but at the same time, simply moving to cash entirely may not cut it. An international ETF like IDOG, for example, could offer the right combination of diversification and current income.
See more: As Market Diversifies, Look to Quality Small-Cap ETF OUSM
The ALPS International Sector Dividend Dogs ETF (IDOG ), charges a 50 basis point fee. The fund tracks an equal-weighted index of five firms from each of the 10 GICS sectors. It picks the top five ranked by dividend yield. The strategy ends up, of course, with 50 firms in its portfolio. By taking that equal weighting and sector-based approach, the fund limits overexposure to dividend heavyweight segments like financials or utilities.
International ETF IDOG & Diversification
The strategy’s approach offers two major benefits — diversification and income. First and foremost, its foreign equities focus can help diversify away from U.S. equities. That could limit exposure to the tariff tumult facing U.S. consumers and stocks. What’s more, the fund’s dividend approach could help identify foreign equities firms that are healthier than others. Dividends provide a strong signal of a firm’s internal outlook.
On an income front, the strategy’s focus on dividend-paying stocks can help add some additional ballast to portfolios. Per SS&C ALPS Advisors data, IDOG has offered a 30-day SEC yield of 5.34% as of March 31st. The strategy recently made a $0.32560 distribution, as well, per the fund’s profile.
IDOG has returned 9% YTD per YCharts data, as well. That has outperformed the SPDR S&P 500 ETF Trust (SPY ) in that time, per YCharts. The international ETF has also outperformed the MSCI ACWI Ex USA Net Total Return Index according to YCharts in that time, as well. Taken together, the fund’s dividend and international focusses could make it an intriguing option amid tariff uncertainty.
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VettaFi is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for IDOG, for which it receives an index licensing fee. However, IDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of IDOG.
