Why dividend stocks should be a hot investment in the fall.

More investors are looking at dividend stocks before the Federal Reserve's interest rate decision in September.

Paul Baiocchi of SS&C ALPS Advisors believes the Fed will ease rates, making it a wise strategy.

This week, the chief ETF strategist stated on CNBC's "ETF Edge" that investors are shifting their focus from fixed income and money markets to leveraged companies that may benefit from a declining interest rate environment.

The issuer of various dividend exchange-traded funds, including the ALPS Dividend ETF and its equivalent, the ALPS Dividend ETF, is ALPS.

According to Baiocchi, both dividend ETFs are overweight relative to the market, and he classifies the sectors they exclude as three of the most unstable in the market.

Baiocchi stated that not only are there fluctuations in pricing, but there are also fluctuations in the underlying fundamentals of those sectors.

The volatility he explains would jeopardize the objective of the OUSA and OUSM, which is to prevent drawdowns.

Baiocchi stated that while searching for dividends as part of the methodology, it is important to consider durable dividends that have been growing and are well supported by fundamentals.

Mike Akins, ETF Action's founding partner, considers OUSA and OUSM to be defensive strategies due to their clean balance sheets.

He also notes  the dividend category in ETFs has been surging in popularity.

"Akins stated that he does not possess the crystal ball to explain why dividends are currently popular, but he believes that people view paying dividends as a sign of a company's financial stability and longevity."