.It looks a lot more investors are actually looking at dividend inventories ahead of the Federal Reserve's rates of interest choice in September.Paul Baiocchi of SS&C Advisors believes it is actually a sound approach due to the fact that he views the Fed relieving prices." Capitalists are actually moving back towards rewards out of money markets, away from predetermined earnings, however additionally notably toward leveraged providers that could be rewarded through a decreasing interest rate atmosphere," the chief ETF planner told CNBC's "ETF Edge" this week.ALPS is the company of a number of reward exchange-traded funds featuring the ALPS O'Shares United State Premium Reward ETF (OUSA) as well as its version, the ALPS O'Shares U.S. Small-Cap Premium Dividend ETF (OUSM). Relative to the S&P five hundred, both returns ETFs are actually over weight medical, financials and also industrials, according to Baiocchi. The ETFs omit power, property and also components. He describes the teams as 3 of the absolute most uncertain fields in the market." Not merely perform you possess cost dryness, however you possess basic dryness in those fields," Baiocchi said.He discusses this dryness will undermine the goal of the OUSA and also OUSM, which is actually to deliver drawdown evasion." You're seeking dividends as portion of the method, yet you are actually examining dividends that are heavy duty, dividends that have been expanding, that are properly sustained by essentials," Baiocchi said.Mike Akins, ETF Activity's founding companion, sights OUSA as well as OUSM as defensive strategies given that the inventories generally have tidy balance sheets.He likewise notesu00c2 the reward classification in ETFs has been actually rising in popularity." I do not possess the crystal ball that explains why dividends are actually therefore chic," Akins pointed out. "I think folks look at it as if you're paying for a reward, as well as you have for years, there is a sense to viability to that company's annual report.".