Diversify Abroad in Global Dividend ETF IDOG

Looking to buoy your portfolio with current income without significant U.S. concentration risk exposure? It may be worth looking at a global dividend ETF like IDOG. IDOG, the ALPS International Sector Dividend Dogs ETF, offers investors exposure to a global group of firms providing appealing dividends. That doesn’t just mean income from those firms, either, but also something potentially even more valuable: information.

See more: With Payouts Rising, Investigate International Dividends ETFs

While dividends, of course, provide a meaningful boost to portfolios, often reinvested, they also stand out as data points. In foreign markets, especially, comparable data points like dividend strength and health can really help. Even more than return on equity (ROE) or stock price, dividends signal quite a bit about a firm’s mentality.

International diversification could really help, given how delicately balanced macro factors in the U.S. appear. The economy continues to hum along, but with the variety of interest rate outcomes vacillating between hard, soft, or even no landing, getting some returns elsewhere may appeal.

The global dividend ETF charges a 50 basis point (bps) fee for its services. It tracks an equal-weighted index, which includes the five firms with the highest dividend yield in each of the 10 GICS sectors from foreign markets. That helps craft a portfolio that is even more durable amid macroeconomic headwinds should one sector or another take a hit.

Per VettaFi’s ETF Database, the strategy is largely allocated to Europe with minimal exposure to China. Instead, it layers in some healthy exposure to Japan, a market that has done well following years of stale performance. IDOG has returned 12.9% over one year and 7.2% over five. For investors looking to diversify abroad, the global dividend ETF presents one solid option.

VettaFi LLC (“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.

For more news, information, and analysis, visit the ETF Building Blocks Channel.

Read more on ETFTrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.