.The Russell 2000 may have a profits problem.Though the small-cap mark got 10.1% in July, it is actually gone down approximately 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the inconsistent relocate to the mark's overall arrangement, with a quote coming from Apollo Global presenting 40% of those firms have damaging earnings." [Capitalists] have actually basically resigned on their own to the fact that through being in the Russell 2000, I am actually only heading to must take the great along with the bad," the firm's main ETF strategist told CNBC's "ETF Advantage" this week.To stay away from the profitability pain, Baiocchi recommends entrepreneurs prioritize high quality business, taking a look at additional careful exchange-traded funds including his firm's ALPS O'Shares U.S. Small-Cap Premium Reward ETF Reveals (OUSM)." The idea is quality firms that pay for as well as grow their rewards, as well as significantly, have a lot less dryness than their peers," he stated. "It enables specialists and investors who have observed small caps go sidewards for five years to become allocated to a group that's lagged." Aside from its own profitability display screen, the fund has just 107 supplies u00e2 $" a portion of what's inside the Russell 2000. Its top 3 holdings are actually Tradeweb Markets, Juniper Networks and also Old State International, each sitting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outshining the Russell through greater than 2 percentage aspects because time.Disclaimer.