April 22, 2021 International diversification isn’t just an investing buzz phrase. It’s a viable, important strategy and one accessible with the ALPS identifies the five highest-yielding securities in the 10 GICS sectors on the last trading day of November. From there, IDOG is rebalanced quarterly in an effort to keep sector weights in the area of 10% and individual holdings at around 2%. With valuations compelling, there are multiple reasons why IDOG is attractive in the current environment. “Adding international exposure is one of the first steps toward a diversified portfolio. Even minimalist investors usually carve out a portion of their portfolios for non-U.S. stocks after adding exposure to domestic stocks and bonds,” writes Morningstar analyst Amy Arnott. “International stocks are subject to myriad factors that can lead to divergent performance, including local market conditions, currency movements, exposure to different sectors and industries, and political and economic factors. These traits mean they often show different performance patterns–both relative to the U.S. market and versus other international markets.”