RISE US High Dividend Dow Jones TOP10 ETF Complete Analysis - Modern Dogs of the Dow Strategy
🆕 A New US Dividend ETF Emerges
With SCHD's prolonged underperformance, new US dividend ETFs are listing in Korea to fill the gap. RISE US High Dividend Dow Jones TOP10 is one of them.
📊 Basic Information
| Item | Details |
|---|---|
| Listed | October 21, 2025 |
| Manager | KB Asset Management |
| Total Fee | 0.01% annually |
| Strategy | Modified Dogs of the Dow |
The 0.01% total fee is the lowest among foreign equity ETFs. KB Asset Management's low-cost policy shines here.
🐕 What is the Dogs of the Dow Strategy?
One of America's famous dividend investing strategies.
Core Principle:
- Select top 10 highest dividend yielding stocks from Dow Jones 30 at year start
- Invest equal weight (10% each) in all 10 stocks
- Hold for one year, then rebalance
Logic:
- High dividend = relatively undervalued blue-chip
- Dow Jones 30 = America's proven representative companies
- Automatic "buy low, sell high" effect annually
📈 How RISE TOP10 Differs
It's not exactly the same as the traditional Dogs of the Dow strategy.
| Aspect | Dogs of the Dow | RISE TOP10 |
|---|---|---|
| Basis | Prior year-end dividend yield | Expected dividend yield |
| Rebalancing | Once yearly (year start) | Once yearly |
| Holdings | 10 stocks | 10 stocks |
The key is using expected dividend yield. This reflects future outlook rather than past data, enabling more proactive investing.
💰 2025 Portfolio Holdings
| Rank | Stock | Dividend Yield | Sector |
|---|---|---|---|
| 1 | Verizon | 6.8% | Telecom |
| 2 | Chevron | 4.3% | Energy |
| 3 | Amgen | 3.5% | Healthcare |
| 4 | Johnson & Johnson | 3.2% | Healthcare |
| 5 | Coca-Cola | 3.1% | Consumer Staples |
| 6 | IBM | 3.0% | IT |
| 7 | Cisco | 2.9% | IT |
| 8 | Nike | - | Consumer Discretionary |
| 9 | Home Depot | - | Consumer Discretionary |
| 10 | Merck | - | Healthcare |
Average Dividend Yield: ~3.37% (higher than SCHD)
🎯 Why These Stocks?
Looking at the list, one feeling emerges: comfort.
Before analyzing outlooks or dividend yields, these are names that inspire trust.
- Verizon: America's largest telecom
- Johnson & Johnson: 60+ years of consecutive dividend increases
- Coca-Cola: Warren Buffett's eternal holding
- IBM: Revival in the AI era
Being in the Dow Jones 30 means they're already proven stocks.
📊 Sector Diversification
Despite selecting purely by dividend yield, sector diversification is surprisingly good.
- Healthcare: 3 stocks
- IT: 2 stocks
- Consumer Staples: 2 stocks
- Consumer Discretionary: 2 stocks
- Energy: 1 stock
- Telecom: 1 stock
Unlike big tech ETFs concentrated in one sector, this offers stability.
💡 Advantages for Investors
1. Extreme Simplicity
- 10 stocks, once-yearly rebalancing
- No complex quant strategies
- Methodology anyone can understand
2. Proven Strategy
- 30+ years of Dogs of the Dow history
- Long-term performance similar to or slightly above S&P 500
3. Ultra-Low Cost
- 0.01% total fee
- Maximized cost savings for long-term holders
4. Tax-Advantaged Account Use
- Direct US dividend investing not available in ISA/pension accounts
- This ETF enables US high-dividend exposure in tax-advantaged accounts
⚠️ Considerations
- Concentration Risk: With 10 stocks, individual stock impact is significant
- Annual Rebalancing: Slow response to market changes
- New Listing: Limited track record (judge by underlying index)
📝 Conclusion
RISE US High Dividend Dow Jones TOP10 is an ETF that lets you easily execute the Dogs of the Dow strategy.
- Prefer simple, clear strategies → ✅
- Want stable dividend investing in large-cap blue-chips → ✅
- Want US dividend exposure in tax-advantaged accounts → ✅
If you trust SCHD's methodology, keep SCHD, but for those who wanted to invest in US high-dividend stocks, this is highly recommended. 🙏