Market turbulence could be misleading retail investors.

Nick Ryder, chief investment officer at Kathmere Capital Management, warns that the current market environment should not push investors toward defensive trades, such as dividend-focused stocks or bonds.

“Too often, we see investors overly focused on income, and that approach can leave significant opportunities on the table,” Ryder told CNBC’s “ETF Edge” this week. “Our guidance is for clients to adopt a total-return mindset, which applies to stocks, bonds, and every asset in between.”

Ryder, whose firm manages $3.5 billion in assets, cautions against what is known as “yield-chasing.”

“In the fixed-income space, yield-chasing can involve taking on additional interest-rate risk, extending duration, or moving from investment-grade bonds to high-yield ones — each of which carries very different risk and return expectations,” he explained.

He emphasizes that income should not be the cornerstone of long-term portfolios. Instead, investors should first establish their goals and assess risk tolerance, then consider income as a complement. Focusing on income first, Ryder warns, can subtly steer portfolios into unintended positions.

Despite market uncertainty, Ryder remains positive about the broader economic outlook.

“The economy has shown remarkable resilience,” he said. “Corporate profitability, in particular, has been surprisingly strong.”

This total-return philosophy is echoed by Christian Magoon, CEO of Amplify ETFs, who advises investors not to let yield figures dictate their choices.

“Being smart about yield means balancing attractive income with potential upside or long-term capital appreciation, rather than chasing the highest yield possible,” Magoon said. “Otherwise, investors risk falling into a yield trap.”