- SDOG takes an equal-weight-by-sector approach by selecting the five highest-yielding S&P 500 stocks in each sector. Annual fees are high at 0.40%, but the ETF currently yields 3.48%.
- High-dividend ETFs have turned the corner and was one of the best-performing categories in the last six months. Still, SDOG underperformed against most of its 20 peers.
- SDOG has the cheapest forward P/E out of any high-dividend ETF I track, but its growth potential is meager. It's a deep-value play only that requires a lot of conviction.
- Instead, I recommend a balanced approach. ETFs that score well on valuation, growth, volatility, and fees are much more likely to outperform, so I'm downgrading SDOG to a hold.
For further details see:
ALPS Sector Dividend Dogs ETF: Let Sleeping Dogs Lie