Paul Baiocchi of SS&C ALPS Advisors thinks it is a sound strategy because he sees the Fed easing rates.
"Investors are moving back toward dividends out of money markets, out of fixed income, but also importantly toward leveraged companies that might be rewarded by a declining interest rate environment," the chief ETF strategist told CNBC'sWant to be a better public speaker? Imagine yourself on the Titanic, says Vice President Kamala Harris
"You're looking for dividends as part of the methodology, but you're looking at dividends that are durable, dividends that have been growing, that are well supported by fundamentals," Baiocchi said. Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly
Mike Akins, ETF Action's founding partner, views OUSA and OUSM as defensive strategies because the stocks generally have clean balance sheets.I think people look at it as if you're paying a dividend, and you have for years, there is a sense to viability to that company's balance sheet."