.It shows up extra clients are checking out dividend inventories ahead of the Federal Reserve's interest rate decision in September.Paul Baiocchi of SS&C mountain range Advisors assumes it is actually a sound technique considering that he sees the Fed easing fees." Clients are actually returning toward returns out of cash markets, out of predetermined income, but likewise significantly toward leveraged companies that may be awarded through a decreasing interest rate setting," the chief ETF planner said to CNBC's "ETF Edge" this week.ALPS is actually the company of many reward exchange-traded funds including the O'Shares USA Top Quality Dividend ETF (OUSA) and its equivalent, the O'Shares U.S. Small-Cap Quality Returns ETF (OUSM). About the S&P five hundred, both reward ETFs are actually overweight healthcare, financials and also industrials, according to Baiocchi. The ETFs leave out energy, realty and also components. He pertains to the groups as 3 of the best unpredictable sectors in the marketplace." Not only do you have cost dryness, yet you have basic dryness in those fields," Baiocchi said.He explains this dryness would certainly undermine the goal of the OUSA as well as OUSM, which is actually to give drawdown avoidance." You're looking for rewards as component of the strategy, however you are actually looking at returns that are long lasting, rewards that have actually been developing, that are effectively supported by basics," Baiocchi said.Mike Akins, ETF Action's founding companion, perspectives OUSA as well as OUSM as defensive tactics considering that the stocks normally possess clean harmony sheets.He likewise notesu00c2 the reward category in ETFs has actually been actually rising in appeal." I do not possess the crystal ball that discusses why dividends are thus chic," Akins claimed. "I think individuals check out it as if you're paying a reward, as well as you have for years, there is a feeling to viability to that firm's annual report.".