RDOG ETF up 15.1% YTD; Morningstar flags undervalued REITs

ALPS REIT Dividend Dogs ETF (RDOG) has risen 15.1% year-to-date and posts a trailing 12-month dividend yield of 6.09%. The fund marked its 18th anniversary in May.

RDOG selects the highest-yielding real estate investment trusts across nine real estate sub-segments and assigns equal weight to each segment. The structure spreads holdings across property types to reduce concentration in any single niche.

Morningstar analysts identify several RDOG holdings that appear undervalued relative to their fundamentals. The firm highlights Realty Income and American Tower among the ETF’s positions, and also lists Crown Castle, SBA Communications and Park Hotels & Resorts.

Morningstar analyst Kevin Brown noted high coverage ratios at Realty Income and described tenants as “healthy and unlikely to request rent concessions.”

Michael Hodel of Morningstar pointed to American Tower’s expansion into international markets and said many countries remain in earlier stages of mobile-data infrastructure buildout, which could support demand for tower capacity.

RDOG’s 6.09% trailing yield is higher than many broad real estate ETFs. The fund’s performance this year has come without interest-rate cuts from the Federal Reserve.

VettaFi LLC provides the index for RDOG and receives an index licensing fee. RDOG is not issued, sponsored, endorsed or sold by VettaFi, and the firm has no obligation or liability in connection with the ETF’s issuance, administration, marketing or trading.