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ALPS is rounding out its "Dogs of the Dow" suite of exchange traded funds, filing with the Securities and Exchange Commission to launch an emerging market-focused version.

According to an SEC exemptive relief filing, the ALPS Emerging Sector Dividend Dogs ETF (EDOG) will try to reflect the performance of the S-Network Emerging Sector Dividend Dogs Index. The proposed fund will have a 0.60% expense ratio.

The index is comprised of the highest paying stocks, or "Dividend Dogs," from the S-Network Emerging Markets Index, which holds large-cap, emerging market stocks. The Dividend Dogs include the five stocks in each of the ten Global Industry Classification Standard sectors that make up the S-Network Emerging Markets.

The ETF will track 50 stocks and the underlying index will reconstitute annually on the third Friday of December each year. Component holdings are then equally weighted.

The so-called Dogs of the Dow theory suggests that high dividend yields indicate that a company's share price has bottomed out and should rebound relative to other stocks - dividend yield is calculated based on the regular cash dividends paid by a company over the past twelve months, divided by the share price.

"The rationale behind the strategy is this: Given that most large companies seldom adjust their dividend payouts in response to a decline in share price, a high dividend relative to a company's stock price means that its business cycle and share price have reached their trough and are set to rise," writes Morningstar analyst Robert Goldsborough.

ALPS currently offers two "dividend dogs" ETFs, including the ALPS Sector Dividend Dogs ETF (SDOG) and the ALPS International Sector Dividend Dogs ETF (IDOG).

Max Chen contributed to this article.

Source: ALPS Plans EM Dividend Dogs ETF