.It seems more investors are eyeing dividend stocks in front of the Federal Reserve's rate of interest choice in September.Paul Baiocchi of SS&C mountain range Advisors assumes it is actually an audio technique given that he views the Fed reducing rates." Real estate investors are returning toward returns out of cash markets, away from set income, yet likewise significantly towards leveraged companies that might be awarded through a dropping interest rate setting," the principal ETF schemer said to CNBC's "ETF Edge" this week.ALPS is actually the provider of several reward exchange-traded funds featuring the mountain range O'Shares United State Premium Reward ETF (OUSA) and also its counterpart, the ALPS O'Shares United State Small-Cap High Quality Returns ETF (OUSM). About the S&P five hundred, both dividend ETFs are over weight medical care, financials as well as industrials, according to Baiocchi. The ETFs omit energy, realty as well as materials. He pertains to the groups as 3 of the most unsteady sectors in the market." Certainly not simply do you have rate volatility, however you possess vital dryness in those sectors," Baiocchi said.He details this volatility would certainly weaken the target of the OUSA as well as OUSM, which is to provide drawdown evasion." You're seeking returns as component of the approach, however you are actually considering dividends that are actually heavy duty, returns that have been actually expanding, that are well assisted through basics," Baiocchi said.Mike Akins, ETF Action's founding companion, scenery OUSA as well as OUSM as protective techniques because the supplies generally possess clean equilibrium sheets.He also notesu00c2 the reward type in ETFs has actually been rising in level of popularity." I do not have the crystal ball that clarifies why rewards are actually therefore in style," Akins said. "I presume people take a look at it as if you are actually paying a returns, as well as you have for years, there is actually a feeling to feasibility to that firm's balance sheet.".