.It appears much more entrepreneurs are actually looking at dividend inventories in front of the Federal Reserve's interest rate decision in September.Paul Baiocchi of SS&C mountain range Advisors assumes it is a sound tactic since he finds the Fed alleviating rates." Real estate investors are returning toward returns out of amount of money markets, away from fixed income, but likewise notably towards leveraged companies that may be compensated by a decreasing interest rate setting," the principal ETF strategist told CNBC's "ETF Edge" this week.ALPS is actually the issuer of many reward exchange-traded funds including the mountain range O'Shares USA Top Quality Dividend ETF (OUSA) and also its own equivalent, the O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM). About the S&P 500, both reward ETFs are obese health care, financials and also industrials, according to Baiocchi. The ETFs omit power, realty as well as products. He describes the groups as 3 of the best unstable sectors in the market." Not merely perform you have price dryness, but you possess fundamental dryness in those sectors," Baiocchi said.He reveals this volatility will threaten the target of the OUSA and also OUSM, which is actually to provide drawdown avoidance." You're searching for returns as aspect of the methodology, yet you are actually taking a look at dividends that are actually long lasting, dividends that have actually been actually expanding, that are actually effectively supported through essentials," Baiocchi said.Mike Akins, ETF Activity's founding companion, viewpoints OUSA as well as OUSM as defensive techniques because the inventories normally have tidy harmony sheets.He additionally notesu00c2 the returns type in ETFs has actually been climbing in attraction." I do not possess the clairvoyance that describes why rewards are actually thus stylish," Akins stated. "I think folks look at it as if you're spending a dividend, and you eat years, there is a feeling to viability to that firm's balance sheet.".