ALPS advisors, a subsidiary of DST systems, has launched an ALPS Sector Dividend Dogs ETF.
The ETF applies the 'Dogs of the Dow Theory', an investment strategy which means that an investor invests in the ten Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price.
"ALPS is thrilled to add a high-yield large-cap equity income ETF to our suite of portfolio solutions," said Tom Carter, executive vice president of ALPS Holdings.
The dividend-focused ETF aims at serving up a higher dividend yield relative to other US-large-cap indexes, while keeping a diversified portfolio across all ten sectors of the market.
"We believe SDOG offers investors a product with attractive differentiating factors from other large-cap dividend ETFS including higher yield and sector diversification."
The new exchanged-traded fund tracks the S-Network Sector Dividend Dogs Index (SDOGX) a portfolio of 50 stocks derived from the S&P 500.
