IDOG & Developed International Stocks Continue Their 2025 Dominance

• The ALPS International Sector Dividend Dogs ETF (IDOG) rallied 5.41% in August, outpacing US and broad international developed equities as the fund’s deep-value portfolio benefited from a softer US dollar and fiscal policy support as Europe and global central banks leave the door open to potential rate cuts and easing measures into year-end. The supportive policy environment for ex-US stocks, paired with still-attractive valuations, may support high-yielding value exposures and IDOG moving forward as inflation remains a global issue. 
  
  
• IDOG’s overweight to cheaper cyclical stocks within the Materials sector led performance in August as Australian mining companies formalized plans with Chinese banks to ramp up decarbonization plans, as the US steps away from clean energy initiatives in favor of fossil fuels. BHP Group (BHP AU, 2.20% weight*), the world's largest base metal producer, gained over 11% last month after announcing that it will lead a group of major steelmakers and industrial companies in exploring potential carbon capture utilization and storage around Asia; if successful, the study could significantly decarbonize the steel industry, which is currently one of the heaviest polluters due to heavy reliance on coal. Also moving higher within IDOG’s Materials allocation, Australian mining company, Fortescue LTD (FMG AU, 2.33% weight*), jumped 10.41% last month, also benefiting from Asia’s decarbonization push after securing ~$2 billion from major Chinese banks, with Fortescue leading efforts in hydrogen to better supply the world with clean energy. Similarly, Australia’s largest power retailer, Origin Energy LTD. (ORG AU, 2.14% weight*) gained 12.54% in August after posting better-than-expected full-year 2025 profits with an outlook for 2026 that outpaced key competitors. Origin’s higher profit stemmed from its supportive liquified natural gas (LNG) cash flows, with the company expanding market leadership in Australia as one of the largest LNG exporters.
  
  
• Outside of Australia, numerous IDOG names performed well in August thanks to Artificial Intelligence (AI) and data center tailwinds igniting higher telecom earnings. Singapore Telecommunications (ST SP, 2.06% weight*) gained over 12% last month after reporting a significant rise in quarterly profits (+14% year-over-year (Y/Y)), highlighting data center expansion buoyed by policy support from the local government. Lastly, IDOG’s allocation to the United Kingdom saw Vodafone Group PLC (VOD LN, 2.25% weight*), a wireless communication provider, advance nearly 10% in August after reports hit the tape of a potential deal to sell its Spanish unit to Telefonica (TEF SM, not in IDOG), stoking speculation for further consolidation among European telcos. 

"It is plausible to see upside into the next year, especially with the fiscal aspect (easing) in Europe...You want to diversify to other (ex-US) parts of the world where the currency appreciation helps you.”^

– Beata Manthey, Citi European Equity Strategy Head, August 8, 2025

Easing Financial Conditions: The Macro Case for International Value

• Following an eventful Jackson Hole Economic Policy Symposium, markets digested the Federal Reserve’s (Fed) dovish policy tone, where a clear openness to rate cuts and future easing measures caused the US dollar to continue its downtrend into late August – boosting international equity returns. European and broader ex-US developed markets have posted strong gains year-to-date on a weaker dollar/stronger euro, fiscal easing, defense spending and a flight from US assets in the second quarter, with the broad Europe (STOXX Europe 600 Index) outperforming the S&P 500 Index by over 15 percentage points this year, the most since 2006. European banks (Financials sector) have been the most prominent contributors to gains in 2025; however, as economic growth and gross domestic product (GDP) shifted from negative to positive in the second half of the year for most major European countries, the equity story has broadened to include cyclicals (industrials/energy/materials) and other undervalued sectors of the market with attractive cash flows.  
  
  
• With global markets now pricing Fed easing, the next leg of returns outside the US may come from undervalued packets of developed markets and away from a crowded Financials trade, where broad-based international funds/exchange-traded funds (ETFs) are reliant on a ~25% sector bet to expensive European banks that face steep net interest margin (NIM) compression if global central banks continue to cut rates faster than long rates increase. The ALPS International Sector Dividend Dogs ETF (IDOG) employs an equal-weighted sector approach (excluding Real Estate) to developed international equities, providing a broad exposure to deep-value names across Europe’s economies and other developed markets positioned to benefit from improving earnings growth and broader cyclical participation.

• As of August-end, consensus forecasts call for developed international and European earnings growth in 2026 to match or exceed the S&P 500 – while trading at a nearly nine-turn price-to-earnings ratio (P/E) discount (MSCI EAFE P/E of 16.15x vs. S&P 500 P/E of 24.68x). 
  
  
• IDOG’s deep-value portfolio trades at a 14x P/E, with a country exposure of ~66% Western Europe, ~30% Asia Pacific and ~4% Eastern Europe.

Source: Bloomberg L.P. and SS&C ALPS Advisors, cumulative performance as of 08/31/2025 and annualized performance as of 06/30/2025  

Performance data quoted represents past performance. Past performance is no guarantee of future results so that shares, when redeemed, may be worth more or less than their original cost. The investment return and principal value will fluctuate. Current performance may be higher or lower than the performance quoted. For current month-end performance call 1-866-759-5679 or visit www.alpsfunds.com. Performance includes reinvested distributions and capital gains.

Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET and does not represent the returns an investor would receive if shares were traded at other times.

Fund inception date: 06/27/2013

Total Operating Expenses: 0.50%

* Weight in IDOG as of 08/31/2025

^ This strategy may not be suitable for all investors.

Top 10 Holdings

As of 08/31/2025, subject to change

Important Disclosures & Definitions

An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus containing this and other information, call 1-866-759-5679 or visit www.alpsfunds.com. Read the prospectus carefully before investing.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemable.

Performance data quoted represents past performance. Past performance is no guarantee of future results; current performance may be higher or lower than performance quoted.

All investments are subject to risks, including the loss of money and the possible loss of the entire principal amount invested. Additional information regarding the risks of this investment is available in the prospectus.

The Fund is subject to the additional risks associated with concentrating its investments in companies in the market sector.

Diversification does not eliminate the risk of experiencing investment losses.

The Fund’s investments in non-US issuers may involve unique risks compared to investing in securities of US issuers, including, among others, less liquidity generally, greater market volatility than US securities and less complete financial information than for US issuers. In addition, adverse political, economic or social developments could undermine the value of the Fund’s investments or prevent the Fund from realizing the full value of its investments. Finally, the value of the currency of the country in which the Fund has invested could decline relative to the value of the US dollar, which may affect the value of the investment to US investors. 

The Fund employs a “passive management” - or indexing - investment approach and seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index. Unlike many investment companies, the Fund is not “actively” managed. Therefore, it would not necessarily sell or buy a security unless that security is removed from or added to the underlying index, respectively.  

CAC 40 Index: a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant stocks among the 100 largest market caps on the Euronext Paris.

DAX Index: a stock market index consisting of the 40 major German blue chip companies trading on the Frankfurt Stock Exchange.

Dovish: in finance, "dovish" describes a stance that favors expansionary monetary policy, characterized by lower interest rates to encourage economic growth and reduce unemployment, even at the risk of higher inflation. 

EURO STOXX 50 Index: Europe's leading blue-chip index for the Eurozone, provides a blue-chip representation of supersector leaders in the region.

Financial Times Stock Exchange 100 Index (FTSE 100 Index): the United Kingdom's best-known stock market index of the 100 most highly capitalized blue chips listed on the London Stock Exchange.

FTSE MIB Index: the benchmark stock market index for the Borsa Italiana, Italy's national stock exchange. It measures the performance of the 40 most liquid and capitalized Italian stocks and is considered an indicator of the overall health of Italy's economy.

IBEX 35 Index: the benchmark stock market index of the Bolsa de Madrid, Spain's principal stock exchange. Initiated in 1992, the index is administered and calculated by Sociedad de Bolsas, a subsidiary of Bolsas y Mercados Españoles, the company which runs Spain's securities markets.

Morningstar Developed Markets ex-North America Index: measures the performance of companies in developed markets ex-North America. It covers approximately 97% of the full market capitalization in the Developed Markets ex-North America. 

MSCI EAFE Index: an equity index which captures large- and mid-cap representation across 21 developed markets countries around the world, excluding the US and Canada, covering approximately 85% of the free float-adjusted market capitalization in each country.

OMX Stockholm 30 Index: a stock market index for the 30 largest and most traded stocks on the Nasdaq Stockholm stock exchange.

Price/Earnings (P/E) Ratio: a valuation ratio of a company's current share price compared to its per-share earnings.

S&P 500 Index: widely regarded as the best single gauge of large-cap US equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.

S-Network International Sector Dividend Dogs Index (IDOGX): a portfolio of stocks derived from a universe of mainly large capitalization stocks domiciled in developed markets outside the Americas (the “S-Network Developed International Equity 1000 Index”). The IDOGX methodology selects the five stocks in each of the ten GICS sectors that make up the universe which offer the highest dividend yields as of the last trading day of November. The fifty stocks that are selected for inclusion in the portfolio are equally weighted.

STOXX Europe 600 Index: a broad measure of the European equity market. With a fixed number of 600 components, the index provides extensive and diversified coverage across 17 countries and 11 industries within Europe’s developed economies, representing nearly 90% of the underlying investable market.

Swiss Market Index (SMI): Switzerland's blue-chip stock market index, which makes it the most followed in the country. It is made up of 20 of the largest and most liquid Swiss Performance Index stocks. 

One may not invest directly in an index.

ALPS Advisors, Inc., registered investment adviser with the SEC, is the investment adviser to the Fund. ALPS Advisors, Inc. is affiliated with ALPS Portfolio Solutions Distributor, Inc.

ALPS Portfolio Solutions Distributor, Inc. is the distributor for the Fund.

Not FDIC Insured • No Bank Guarantee • May Lose Value

DOG001512 12/31/2025