SDOG - SDOG: Old-Economy Value Play Tepid Growth Mostly Soft Performance
2024-03-12 02:40:09 ET
Summary
- Targeting stocks with high dividend yields, SDOG ends up accumulating mostly slowly-growing old-economy companies, like those from the tobacco and oil & gas industries.
- While possibly beneficial amid downturns, it is anything but opportune when enthusiasm returns, as value-heavy portfolios have smaller potential to participate in the bull run.
- ALPS Sector Dividend Dogs ETF's smart beta strategy also boosts its value profile while detracting from growth.
- Assuming a remarkable value tilt, the Fund might be a top-class contrarian bet at this juncture as the market is euphoric, which might be reset at any time.
- I would abstain from defending a contrarian view here, maintaining a Hold rating.
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SDOG: Old-Economy Value Play, Tepid Growth, Mostly Soft Performance