ALPS has submitted regulatory paperwork for the launch of a "dividend dogs" ETF, which would hold 50 stocks, selecting five of the highest-yielding from each of 10 sectors making up the S&P 500 Index.
The Fund would seek to replicate as closely as possible, before fees and expenses, the performance of the S-Network Sector Dividend Dogs Index (the Underlying Index).
According to the filing: “The Underlying Index is a rules-based index intended to give investors a means of tracking the overall performance of the highest dividend paying stocks in the S&P 500 on a sector-by-sector basis.
“The Underlying Index has a fixed number of 50 constituents on each annual reconstitution date, which is the third Friday of December each year. Constituent stocks must be constituents of the S&P 500 Index, the leading benchmark index for US large capitaliaation stocks. The Underlying Index methodology selects the five stocks in each of the ten Global Industry Classification Standard (GICS) sectors that make up the S&P 500 which offer the highest dividend yields as of the last business day of November. Dividend yield is computed based on the regular cash dividends paid by the company over the previous twelve month period, divided by the share price. The fifty stocks that are selected for inclusion in the Underlying Index’s portfolio are equally weighted. The Underlying Index is rebalanced quarterly.
ALPS has nor provided a ticker symbol or an expense ratio for the proposed new fund.