IDOG Tops Broader Market in July

Value stocks helped the ALPS International Sector Dividend Dogs ETF (IDOG) post a 6.14% gain in July, outpacing the broader international market.

July performance beats broader benchmarks

According to the July ETF Spotlight report from ALPS Advisors, IDOG’s return was three times that of the Morningstar Developed Markets ex‑North America Index, which rose 2.04% for the month. The fund’s 40% discount to U.S. equities and a 4.22% dividend yield contributed to its appeal among investors seeking higher income.

Energy led the fund’s ten equally weighted sectors, delivering a 19.3% return. Financials added 8.4%, materials 7.1% and industrials 6.9%. By contrast, information technology was the only sector that fell, dropping 1.7% as cyclical stocks outperformed the artificial‑intelligence trade.

Key holdings drive the gains

Equinor (EQNR), which makes up 2.21% of IDOG, surged 28.54% after reporting a second‑quarter net income of $4.8 billion, up from $1.3 billion a year earlier. The Norwegian energy producer also expanded its 2026 buyback program to $3 billion, reinforcing its earnings outlook.

Other notable contributors included Nippon Steel Corp., the fund’s top holding, which rose nearly 24% following an upgraded full‑year profit forecast and the integration of its newly acquired U.S. Steel unit. Vodafone Group (VOD) advanced 19.96% on renewed growth in Germany, while Daimler Truck Holding posted a 16.7% gain as North American truck volumes recovered.

Capgemini added more than 17% after raising its full‑year growth outlook on AI‑driven enterprise demand, suggesting that artificial‑intelligence applications are beginning to benefit value‑priced dividend payers.

These results illustrate how a mix of value and dividend‑focused equities can thrive when cyclical sectors lead, a shift from the technology‑heavy composition that typically dominates international benchmarks.

Related: Guggenheim ETF Releases Second Quarter Commentary

Looking ahead, the fund’s forward price‑to‑earnings ratio of 12.21 indicates a sizable discount to both the MSCI USA Index (40% lower) and the MSCI EAFE Index (23% lower). The tight sector weighting—only 1.91 percentage points between the largest and smallest allocations—means that any sector‑specific shock could have a pronounced impact on overall performance.

Given the current environment, where the International Monetary Fund notes that the global outlook is being pulled between lingering energy‑price effects from the Middle East conflict and a technology‑driven investment boom, IDOG’s exposure to energy and traditional value stocks may continue to provide a buffer against volatility in high‑growth tech segments.

Beyond the headline numbers, the fund’s valuation metrics highlight a pronounced relative cheapness. The forward P/E of 12.21 sits well below the typical range for U.S. growth‑oriented indices, positioning IDOG as an attractive entry point for income‑focused investors. Moreover, the dividend yield more than quadruples the yield of the MSCI USA Index and surpasses the MSCI EAFE Index, showing the premium income stream generated by the underlying holdings.

Sector concentration also warrants attention. Financials, representing the highest weight, dominate the allocation, while technology occupies the smallest slice. This distribution reflects a deliberate tilt toward sectors that historically generate stable cash flows, which in turn supports the fund’s high dividend payout. The modest spread between the biggest and smallest sector weights suggests that the portfolio’s risk profile is governed more by sector performance than by individual stock movements.

Market trends that lifted the STOXX Europe 600 to a record high on the last trading day of July further contextualize IDOG’s outperformance. While broader developed international equities continued their rally, the fund’s emphasis on dividend‑paying value names allowed it to capture upside from both commodity‑sensitive energy firms and recovering industrial players.

The report also references the broader macro narrative cited by IMF deputy director of research Petya Koeva Brooks, who highlighted the opposing forces of an energy shock and a technology‑driven boom. This duality explains why energy‑centric holdings such as Equinor benefited from a late‑month rebound in crude prices, while the lone technology sector lagged behind the momentum in more cyclical areas.

For investors monitoring the balance between yield and growth, IDOG’s combination of a forward‑looking earnings multiple, a generous dividend yield, and a sector profile weighted toward traditional value industries offers a compelling case study of how dividend‑focused ETFs can outperform in environments where cyclical recovery outpaces pure‑play tech narratives.