Mutual Fund Summary Prospectus (497k)
31 Marzo 2014 - 8:24PM
Edgar (US Regulatory)
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ALPS ETF TRUST
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ALPS INTERNATIONAL SECTOR DIVIDEND DOGS ETF
Ticker:
IDOG
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Summary Prospectus
March 31, 2014
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Before you invest, you may want to review the Funds prospectus, which contains more
information about the Fund and its risks. You can find the Funds prospectus and other information about the Fund online at www.alpssectordividenddogs.com/regulatory-reports/. You can also get this information at no cost by calling
866.675.2639, by sending an e-mail request to SDOG@alpsinc.com, or by contacting your financial intermediary. The Funds prospectus and statement of additional information, each dated March 31, 2014, are incorporated by reference into this
summary prospectus and may be obtained, free of charge, at the website, phone number or e-mail address noted above.
INVESTMENT OBJECTIVE
The Fund seeks investment results that replicate as closely as possible, before fees and expenses, the performance of the S-Network International Sector
Dividend Dogs Index (theUnderlying Index).
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Investors purchasing or selling Shares in the
secondary market may be subject to costs (including customary brokerage commissions) charged by their broker. These costs are not included in the expense example below.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment)
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Management fees
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0.50%
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Other expenses
1
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0.00%
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Total annual Fund operating expenses
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0.50%
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1
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Other expenses are based on estimated amounts for the current fiscal year and are calculated as a percentage of the Funds net assets.
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Example
The following example is intended to help you compare
the cost of investing in the Fund with the costs of investing in other funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also
assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same each year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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One Year
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Three Years
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$ 51
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$ 160
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PORTFOLIO TURNOVER
The Fund will
pay transaction costs, such as commissions, when it purchases and sells securities (or turns over its portfolio). A higher portfolio turnover will cause the Fund to incur additional transaction costs and may result in higher taxes when
Shares are
held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the
Example, may affect the Funds performance. For the fiscal period June 28, 2013 (commencement) through November 30, 2013, the Funds turnover rate was 2% of the average value of the Fund.
PRINCIPAL INVESTMENT STRATEGIES
ALPS Advisors, Inc. (the
Adviser) will seek investment results that replicate as closely as possible, before fees and expenses, the performance of the Underlying Index. The Underlying Index is a rules-based index intended to give investors a means of tracking
the overall performance of the highest dividend paying stocks (i.e. Dividend Dogs) in the S-Net International Developed Markets (ex - Americas) Index, a universe of mainly large capitalization stocks in international developed markets
not located in the Americas (the S-Net Developed Markets) on a sector-by-sector basis. Dividend Dogs refers to the five stocks in each of the ten Global Industry Classification Standard (GICS) sectors that make up
the S-Net Developed Markets which offer the highest dividend yields.
The Underlying Index generally consists of 50 stocks on each annual
reconstitution date, which is the third Friday of December each year. The Underlying Indexs stocks must be constituents of the S-Net Developed Markets universe, which includes stocks whose domicile and primary exchange listings are in
countries in Europe, Australia and the Far East and identified by the World Bank as High Income Countries, and excludes stocks from countries a) located in the Americas, b) that do not have stock exchanges, c) were members of the former Comecon and
d) whose companies, in the opinion of the Index Provider, have idiosyncratic dividend policies. The World Banks methodology for identifying High Income Countries is based on the countrys gross national income (GNI) per capita. The
selection criteria for the universe also includes requirements for sector inclusion, primary exchange listing, minimum market capitalization, share price, average daily trading volume and other factors.
The Underlying Index methodology selects the five stocks in each of the ten GICS sectors that make up the S-Net Developed Markets which offer the highest
dividend yields as of the last trading day of November. Dividend yield is computed based on the regular cash dividends paid by the company over the previous twelve month period, divided by the share price. The eligible stocks that are selected for
inclusion in the Underlying Indexs portfolio are equally weighted. If there are less than 5 eligible securities represented in any sector, then the Underlying Index will include only those securities that qualify. The Underlying Index is
rebalanced quarterly.
The Underlying Index was developed by S-Network Global Indexes LLC (the Index Provider), and its publication began
on June 10, 2013. Standard & Poors serves as calculation agent. Underlying Index values are distributed to the public via the Chicago Mercantile Exchange throughout the day, between the hours of 7:00 p.m. and 4:30 p.m. Eastern
time the following day, at 15 second intervals under the symbol IDOGX.
ALPS INTERNATIONAL SECTOR DIVIDEND DOGS ETF
The Fund generally will invest in all of the securities that comprise the Underlying Index in proportion to
their weightings in the Underlying Index. However, under various circumstances, it may not be possible or practicable to purchase all of the securities in the Underlying Index in those weightings. In those circumstances, the Fund may purchase a
sample of the securities in the Underlying Index in proportions expected by the Adviser to replicate generally the performance of the Underlying Index as a whole. There may also be instances in which the Adviser may choose to overweight another
security in the Underlying Index, purchase (or sell) securities not in the Underlying Index which the Adviser believes are appropriate to substitute for one or more Underlying Index components or utilize various combinations of other available
investment techniques, in seeking to replicate, before fees and expenses, the performance of the Underlying Index. In addition, from time to time securities are added to or removed from the Underlying Index. The Fund may sell securities that are
represented in the Underlying Index or purchase securities that are not yet represented in the Underlying Index in anticipation of their removal from or addition to the Underlying Index.
PRINCIPAL INVESTMENT RISKS
Investors should consider the
following risk factors and special considerations associated with investing in the Fund, which may cause you to lose money.
Investment
Risk.
An investment in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest.
Equity Risk.
A principal risk of investing in the Fund is equity risk, which is the risk that the value of the securities held by the Fund will
fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate or factors relating to specific companies in which the Fund invests. For example, an adverse
event, such as an unfavorable earnings report, may depress the value of equity securities of an issuer held by the Fund; the price of common stock of an issuer may be particularly sensitive to general movements in the stock market; or a drop in the
stock market may depress the price of most or all of the common stocks and other equity securities held by the Fund. In addition, common stock of an issuer in the Funds portfolio may decline in price if the issuer fails to make anticipated
dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common stock is subordinated to preferred stocks, bonds and other debt instruments in a companys capital structure, in
terms of priority to corporate income, and therefore will be subject to greater dividend risk than preferred stocks or debt instruments of such issuers. In addition, while broad market measures of common stocks have historically generated higher
average returns than fixed income securities, common stocks have also experienced significantly more volatility in those returns.
Foreign
Investment Risk.
The Funds investments in non-U.S. issuers may involve unique risks compared to investing in
securities of U.S. issuers, including, among others, less liquidity generally, greater market volatility
than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of the Funds investments or prevent the Fund from realizing the full
value of its investments. Financial reporting standards for companies based in foreign markets differ from those in the United States. Finally, the value of the currency of the country in which the Fund has invested could decline relative to the
value of the U.S. dollar, which may affect the value of the investment to U.S. investors. The Fund will not enter into transactions to hedge against declines in the value of the Funds assets that are denominated in a foreign currency.
Non-Correlation Risk.
The Funds return may not match the return of the Underlying Index for a number of reasons. For example, the Fund
incurs a number of operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Funds securities holdings to reflect changes in the composition of the Underlying
Index. In addition, the performance of the Fund and the Underlying Index may vary due to asset valuation differences and differences between the Funds portfolio and the Underlying Index resulting from legal restrictions, cash flows or
operational inefficiencies. Tax withholdings imposed by foreign countries may also contribute to differences between the Funds return and the return of the Underlying Index.
Due to legal and regulatory rules and limitations imposed domestically or by certain countries in which securities in the Underlying Index trade, the
Fund may not be able to invest in all securities included in the Underlying Index. The Fund may exclude certain securities included in the Underlying Index that are traded in certain countries due to issues such as trading restrictions, cost or
liquidity constraints. For tax efficiency purposes, the Fund may sell certain securities to realize losses, causing it to deviate from the Underlying Index.
The Fund may not be fully invested at times, either as a result of cash flows into the Fund or reserves of cash held by the Fund to meet redemptions and
expenses. If the Fund utilizes a sampling approach or otherwise does not hold all of the securities in the Underlying Index, its return may not correlate as well with the return on the Underlying Index, as would be the case if it purchased all of
the securities in the Underlying Index with the same weightings as the Underlying Index.
To the extent the Fund calculates its NAV based on fair
value prices and the value of the Underlying Index is based on securities closing prices on local foreign markets, (i.e. the value of the Underlying Index is not based on fair value prices) or the Fund otherwise calculates its NAV based on prices
that differ from those used in calculating the Underlying Index, the Funds ability to track the Underlying Index may be adversely affected.
Replication Management Risk.
Unlike many investment companies, the Fund is not actively managed. Therefore, it would not necessarily
sell a security because the securitys issuer was
in financial trouble unless that security is removed from the Underlying Index.
Issuer-Specific Changes.
The value of an individual security or particular type of security can be more volatile than the market as a whole and
can perform differently from the value of the market as a whole.
Underlying Sector Risk.
The Fund will be exposed to the additional risks
associated with its investments in companies of each GICS sector of the Underlying Index. For more on these risks, see Risks of Underlying Sectors in this Prospectus.
High Dividend Yield Style Risk.
While the Fund may hold securities of companies that have historically paid a high dividend yield, those companies
may reduce or discontinue their dividends, thus reducing the yield of the Fund. Low priced securities in the Fund may be more susceptible to these risks. Past dividend payments are not a guarantee of future dividend payments. Also, the market return
of high dividend yield securities, in certain market conditions, may be worse than the market return of other investment strategies or the overall stock market.
Fluctuation of Net Asset Value.
The NAV of the Funds Shares will generally fluctuate with changes in the market value of the Funds
holdings. The market prices of the Shares will generally fluctuate in accordance with changes in NAV as well as the relative supply of and demand for the Shares on the NYSE Arca, Inc. (the NYSE Arca). The Adviser cannot predict whether
the Shares will trade below, at or above their NAV. Price differences may be due, in large part, to the fact that supply and demand forces at work in the secondary trading market for the Shares will be closely related to, but not identical to, the
same forces influencing the prices of the stocks of the Underlying Index trading individually or in the aggregate at any point in time.
FUND PERFORMANCE
As of the date of this Prospectus, the Fund has not yet completed a full calendar year of investment operations. When the Fund has completed a full
calendar year of investment operations, this section will include charts that show annual total returns, highest and lowest quarterly returns and average annual total returns (before and after taxes) compared to the Underlying Index and a benchmark
index selected for the Fund.
INVESTMENT ADVISER
ALPS Advisors, Inc. is the
investment adviser to the Fund.
PORTFOLIO MANAGER
Michael
Akins, Senior Vice President, Director of Index Management & Product Oversight of ALPS Advisors, Inc., has been responsible for the day to day management of the Fund since its inception.
PURCHASE AND REDEMPTION OF SHARES
The Trust will issue and redeem Shares at NAV only in a large specified number of Shares called a Creation Unit or multiples thereof. A
Creation Unit consists of 50,000 Shares. Creation Unit transactions are typically conducted in exchange for the deposit or delivery of in-kind securities included in the Funds Underlying Index and/or cash.
Individual Shares of the Fund may only be purchased and sold in secondary market transactions through brokers. Shares of the Fund are listed for trading
on NYSE Arca and because Shares will trade at market prices rather than NAV, Shares of the Fund may trade at a price greater than or less than NAV.
TAX INFORMATION
The Funds distributions are taxable and will generally be taxed as ordinary income or capital gains.
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