.It seems extra entrepreneurs are actually checking out dividend stocks ahead of the Federal Reserve's rates of interest decision in September.Paul Baiocchi of SS&C ALPS Advisors assumes it is an audio tactic given that he observes the Fed easing rates." Capitalists are moving back toward dividends out of funds markets, away from preset income, however likewise notably toward leveraged providers that might be compensated by a dropping rates of interest environment," the main ETF strategist informed CNBC's "ETF Advantage" this week.ALPS is actually the provider of a number of reward exchange-traded funds including the mountain range O'Shares U.S. Premium Returns ETF (OUSA) and also its own version, the ALPS O'Shares U.S. Small-Cap High Quality Reward ETF (OUSM). Relative to the S&P five hundred, both reward ETFs are overweight healthcare, financials as well as industrials, according to Baiocchi. The ETFs leave out power, realty and also products. He describes the teams as three of one of the most unpredictable sectors in the market." Not simply do you have rate volatility, yet you have vital dryness in those markets," Baiocchi said.He reveals this volatility will threaten the target of the OUSA and OUSM, which is actually to deliver drawdown avoidance." You're trying to find returns as component of the methodology, but you're considering returns that are long lasting, dividends that have actually been expanding, that are well sustained by essentials," Baiocchi said.Mike Akins, ETF Action's founding partner, sights OUSA and also OUSM as protective techniques due to the fact that the inventories normally possess tidy balance sheets.He likewise notesu00c2 the returns group in ETFs has been actually rising in level of popularity." I don't possess the clairvoyance that describes why returns are so chic," Akins claimed. "I presume people take a look at it as if you're paying out a reward, and also you eat years, there is a feeling to practicality to that firm's balance sheet.".