Core Insights - Emerging markets equities and related ETFs have significantly outperformed U.S. stocks in 2025, shedding previous underperformance [1] Group 1: ETF Performance - The ALPS Emerging Sector Dividend Dogs ETF (EDOG) has increased nearly 15% year-to-date and is expected to continue its success into 2026 due to the reduction of dilution in emerging markets [2][5] - The cessation of dilution in emerging market equity indices allows companies to refocus on shareholder rewards, which is a key focus for EDOG [3][4] Group 2: Shareholder Rewards - Companies in emerging markets, particularly in China, are shifting towards buybacks and dividends, with buybacks hitting record highs last year, doubling from the previous year [5][6] - The trend of returning cash to shareholders is expected to benefit ETFs like EDOG, as companies prioritize shareholder rewards [4][5] Group 3: ETF Structure and Risk Management - EDOG's equal weighting of sector exposures may appeal to investors concerned about concentration risk in cap-weighted emerging markets indices [7] - The ETF mitigates geographic risk associated with cap-weighted emerging markets ETFs, which often allocate a significant portion of their portfolios to Chinese stocks [7]