.It appears more entrepreneurs are considering dividend stocks in advance of the Federal Reservoir's interest rate choice in September.Paul Baiocchi of SS&C Advisors thinks it is actually an audio method given that he observes the Fed relieving fees." Investors are returning towards dividends out of loan markets, out of predetermined revenue, however additionally essentially towards leveraged firms that could be awarded by a declining rates of interest environment," the chief ETF strategist told CNBC's "ETF Upper hand" this week.ALPS is actually the company of a number of reward exchange-traded funds including the mountain range O'Shares USA High Quality Dividend ETF (OUSA) as well as its own equivalent, the ALPS O'Shares United State Small-Cap Quality Reward ETF (OUSM). About the S&P 500, both reward ETFs are actually overweight health care, financials and industrials, according to Baiocchi. The ETFs leave out electricity, real estate and products. He pertains to the teams as 3 of the best unpredictable fields on the market." Not merely do you have cost volatility, however you have key volatility in those industries," Baiocchi said.He describes this dryness would certainly undermine the target of the OUSA and also OUSM, which is to offer drawdown avoidance." You are actually seeking rewards as portion of the method, but you are actually examining dividends that are actually resilient, dividends that have been actually expanding, that are effectively supported by essentials," Baiocchi said.Mike Akins, ETF Action's founding companion, sights OUSA as well as OUSM as defensive methods because the sells typically possess tidy equilibrium sheets.He also notesu00c2 the dividend category in ETFs has been actually surging in level of popularity." I do not have the crystal ball that clarifies why returns are actually thus trendy," Akins pointed out. "I presume individuals examine it as if you are actually spending a dividend, as well as you eat years, there is a sense to viability to that firm's annual report.".