Dividend Dogs ETF Refreshes U.S. Portfolio in Annual Rebalance

The ALPS Sector Dividend Dogs ETF (SDOG) completed its annual rebalance this month, refreshing 28% of its portfolio by swapping 14 stocks for 14 new names.

The $1.26 billion fund removed holdings including Exxon Mobil Corp. (XOM), McDonald’s Corp. (MCD) and Philip Morris International Inc. (PM) while adding Starbucks Corp. (SBUX), Target Corp. (TGT) and ConocoPhillips (COP), according to ETF Database.

The annual reconstitution reflects SDOG’s approach to dividend investing, which targets the highest-yielding stocks across all S&P 500 sectors and rebalances based on current dividend yields rather than recent price performance.

SDOG follows a “Dogs of the Dow” approach but casts a wider net by drawing from the entire S&P 500 rather than just the 30 Dow components, according to ETF Database. The fund maintains equal allocations to each of 10 sectors and holds 50 stocks total, rebalancing annually.

The rebalance affected multiple sectors. In energy, the fund removed Exxon while adding ConocoPhillips and EOG Resources Inc. (EOG). Consumer spending stocks showed rotation as well, with McDonald’s and Philip Morris exiting while Starbucks and Target joined the portfolio.

Annual Reconstitution Touches Technology, Industrial Names

Technology holdings also shifted, with the fund removing International Business Machines Corp. (IBM), Cisco Systems Inc. (CSCO), Seagate Technology Holdings (STX) and Skyworks Solutions Inc. (SWKS). The additions included Texas Instruments Inc. (TXN), Accenture (ACN), Hewlett Packard Enterprise Co. (HPE) and Microchip Technology Inc. (MCHP).

Additional changes included removing Archer-Daniels-Midland Co. (ADM) in consumer staples while adding Kenvue Inc. (KVUE), according to ETF Database. Meanwhile, Southwest Airlines Co. (LUV) and Stanley Black & Decker Inc. (SWK) exited as Snap-On Inc. (SNA) and Watsco Inc. (WSO) entered.

The fund has returned 11.11% over the past year and charges a 0.36% expense ratio, according to ETF Database .

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VettaFi LLC (“VettaFi”) is the index provider for SDOG, for which it receives an index licensing fee. However, SDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SDOG.