.The Russell 2000 may have a profits problem.Though the small-cap mark gained 10.1% in July, it is actually dropped around 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi earns the volatile relocate to the mark's overall arrangement, with an estimation from Apollo Global presenting 40% of those providers possess damaging revenues." [Financiers] have actually generally surrendered on their own to the reality that by residing in the Russell 2000, I'm just visiting must take the good with the negative," the company's principal ETF planner informed CNBC's "ETF Advantage" this week.To stay clear of the success burden, Baiocchi suggests investors prioritize quality business, examining more particular exchange-traded funds like his firm's O'Shares united state Small-Cap Top Quality Dividend ETF Portions (OUSM)." The idea is high quality companies that pay and grow their returns, as well as significantly, have much less dryness than their peers," he said. "It makes it possible for experts and entrepreneurs that have viewed tiny caps go laterally for 5 years to become allocated to a type that is actually lagged." Along with its own profits display, the fund contains only 107 stocks u00e2 $" a fraction of what is actually inside the Russell 2000. Its best three holdings are Tradeweb Markets, Juniper Networks as well as Old State International, each sitting at a roughly 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outperforming the Russell through much more than 2 portion factors during that time.Disclaimer.