.It appears even more investors are eyeing dividend stocks before the Federal Reservoir's rates of interest choice in September.Paul Baiocchi of SS&C ALPS Advisors thinks it is actually an audio method because he finds the Fed soothing prices." Clients are moving back toward returns out of amount of money markets, away from preset profit, however additionally significantly towards leveraged companies that might be compensated by a declining rates of interest environment," the principal ETF strategist told CNBC's "ETF Edge" this week.ALPS is actually the company of numerous reward exchange-traded funds featuring the O'Shares United State High Quality Reward ETF (OUSA) and its own version, the ALPS O'Shares USA Small-Cap High Quality Returns ETF (OUSM). Relative to the S&P 500, both returns ETFs are actually over weight medical care, financials and industrials, depending on to Baiocchi. The ETFs omit electricity, real estate as well as components. He describes the groups as three of the absolute most uncertain sectors available." Certainly not simply perform you possess rate volatility, however you have essential volatility in those industries," Baiocchi said.He discusses this dryness would weaken the goal of the OUSA and OUSM, which is to provide drawdown evasion." You are actually trying to find dividends as portion of the method, yet you're examining dividends that are actually heavy duty, dividends that have been increasing, that are actually well sustained through basics," Baiocchi said.Mike Akins, ETF Action's founding companion, views OUSA and OUSM as defensive methods due to the fact that the supplies commonly possess well-maintained balance sheets.He likewise notesu00c2 the dividend group in ETFs has actually been rising in appeal." I do not possess the crystal ball that reveals why dividends are actually thus stylish," Akins said. "I think folks examine it as if you're paying out a returns, and you have for years, there is a feeling to practicality to that firm's balance sheet.".