ALPS Advisors, an asset manager and wholly owned subsidiary of SS&C Technologies, has announced a strategic move for the new Exchange Traded Fund called the ALPS REIT Dividend Dogs ETF [RDOG] that applies the “Dogs of the Dow Theory” to its rules-based investment strategy.
RDOG intends to provide investors with equal exposure to the five highest yielding REITs (“Dividend Dogs”) within nine equally-weighted REIT segments as determined by S-Network, the index provider. This approach excludes mortgage REITs and helps to smooth REIT volatility and segment biases, in addition to offering low overlap with major US REIT indices.
“ALPS Advisors is focused on evolving strategies to provide investors with the right investments to suit their needs,” says Laton Spahr, President of SS&C ALPS Advisors. “We are thrilled to kick off 2020 with RDOG, providing investors with balanced risk exposure and potential high yield delivered at lower cost.”
RDOG includes a separate “Technology REITs” segment that provides exposure to the strong growth opportunities within wireless towers and data centers, which can also act as a defensive attribute for the fund. RDOG excludes the “Mortgage REITs” segment to avoid inclusion of the REITs most sensitive to interest rates and credit spreads.
“When we looked across the existing REIT space, we noticed some large segment biases that may expose REIT investors to outsized risks,” says Andy Hicks, Senior Vice President and Director of ETF Portfolio Management & Research at ALPS. “With RDOG’s equal-weighting approach to both the high yielding REITs and nine segments, we believe investors can access dividend-based income and total returns while reducing overall risk.”