.It seems even more investors are checking out dividend supplies ahead of the Federal Reserve's interest rate choice in September.Paul Baiocchi of SS&C mountain range Advisors believes it is an audio tactic because he views the Fed alleviating prices." Investors are actually returning towards rewards out of amount of money markets, out of preset profit, but additionally notably towards leveraged business that may be awarded through a dropping rates of interest setting," the principal ETF strategist told CNBC's "ETF Advantage" this week.ALPS is actually the issuer of numerous returns exchange-traded funds featuring the ALPS O'Shares United State Quality Dividend ETF (OUSA) and also its counterpart, the ALPS O'Shares USA Small-Cap High Quality Dividend ETF (OUSM). About the S&P 500, both dividend ETFs are actually over weight medical, financials and also industrials, depending on to Baiocchi. The ETFs omit electricity, real property and also materials. He describes the groups as 3 of one of the most uncertain sectors on the market." Certainly not simply perform you have price volatility, but you have vital dryness in those industries," Baiocchi said.He describes this volatility would certainly threaten the goal of the OUSA and also OUSM, which is to offer drawdown evasion." You're seeking rewards as portion of the process, however you are actually checking out dividends that are tough, rewards that have actually been actually expanding, that are actually well supported by fundamentals," Baiocchi said.Mike Akins, ETF Action's founding partner, sights OUSA as well as OUSM as defensive techniques since the supplies typically have tidy balance sheets.He also notesu00c2 the dividend type in ETFs has been actually rising in appeal." I do not possess the crystal ball that reveals why dividends are actually so trendsetting," Akins stated. "I presume people examine it as if you're paying for a reward, and you have for years, there is a sense to practicality to that business's annual report.".