.The Russell 2000 may have a profitability problem.Though the small-cap mark obtained 10.1% in July, it is actually fallen about 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unstable transfer to the index's general arrangement, with a quote coming from Beauty Global presenting 40% of those providers possess damaging incomes." [Financiers] have actually essentially surrendered on their own to the fact that through residing in the Russell 2000, I am actually merely visiting must take the great along with the poor," the company's principal ETF schemer informed CNBC's "ETF Advantage" this week.To steer clear of the earnings bother, Baiocchi recommends entrepreneurs focus on high quality business, taking a look at more particular exchange-traded funds including his firm's mountain range O'Shares united state Small-Cap Top Quality Returns ETF Portions (OUSM)." The idea is actually top quality business that pay and expand their returns, as well as notably, have less volatility than their peers," he pointed out. "It allows advisors as well as capitalists that have actually found tiny limits go sidewards for five years to be designated to a classification that's delayed." Besides its productivity display, the fund includes simply 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks as well as Old Republic International, each resting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outperforming the Russell through much more than 2 percent factors in that time.Disclaimer.