.The Russell 2000 might possess a profits problem.Though the small-cap mark gained 10.1% in July, it's fallen approximately 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the unstable transfer to the mark's general arrangement, along with an estimate coming from Apollo Global revealing 40% of those companies have bad earnings." [Entrepreneurs] have generally surrendered themselves to the simple fact that by residing in the Russell 2000, I am actually just visiting must take the good along with the negative," the agency's main ETF planner informed CNBC's "ETF Upper hand" this week.To prevent the productivity bother, Baiocchi proposes financiers focus on top quality business, taking a look at additional selective exchange-traded funds like his organization's mountain range O'Shares united state Small-Cap High Quality Reward ETF Reveals (OUSM)." The idea is actually premium companies that pay out as well as increase their rewards, as well as importantly, possess much less dryness than their peers," he claimed. "It enables specialists as well as entrepreneurs who have actually seen little limits go laterally for five years to become designated to a category that is actually lagged." Besides its productivity display screen, the fund has simply 107 inventories u00e2 $" a portion of what's inside the Russell 2000. Its best three holdings are actually Tradeweb Markets, Juniper Networks and Old Commonwealth International, each resting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outruning the Russell through much more than 2 percent points because time.Disclaimer.