.The Russell 2000 may have a profits problem.Though the small-cap index got 10.1% in July, it's gone down about 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unpredictable moves to the mark's total arrangement, with an estimate from Apollo Global revealing 40% of those firms have damaging revenues." [Clients] have actually essentially resigned themselves to the reality that through being in the Russell 2000, I am actually merely mosting likely to have to take the great along with the negative," the organization's main ETF strategist said to CNBC's "ETF Edge" this week.To stay clear of the success nuisance, Baiocchi suggests financiers focus on premium providers, examining additional careful exchange-traded funds like his agency's ALPS O'Shares united state Small-Cap Quality Reward ETF Shares (OUSM)." The idea is top quality companies that pay as well as expand their dividends, and also essentially, have much less volatility than their peers," he said. "It allows consultants and financiers who have actually observed tiny hats go laterally for five years to become allocated to a group that's dragged." Besides its own earnings monitor, the fund has just 107 stocks u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each sitting at an approximately 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" outruning the Russell by much more than 2 amount aspects during that time.Disclaimer.