.The Russell 2000 may have a profits problem.Though the small-cap mark gained 10.1% in July, it's lost roughly 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the inconsistent transfer to the index's overall arrangement, along with a quote from Apollo Global revealing 40% of those firms have adverse profits." [Real estate investors] have actually primarily resigned themselves to the truth that through remaining in the Russell 2000, I'm just visiting have to take the excellent with the poor," the organization's principal ETF schemer said to CNBC's "ETF Advantage" this week.To stay clear of the profits drag, Baiocchi recommends capitalists prioritize high quality providers, considering additional careful exchange-traded funds including his firm's mountain range O'Shares USA Small-Cap Premium Returns ETF Portions (OUSM)." The idea is actually quality companies that pay and expand their dividends, and also notably, possess much less dryness than their peers," he claimed. "It allows experts and also clients who have viewed little limits go sidewards for 5 years to be assigned to a group that is actually delayed." Along with its profits display, the fund includes merely 107 stocks u00e2 $" a fraction of what is actually inside the Russell 2000. Its own leading three holdings are Tradeweb Markets, Juniper Networks as well as Old Republic International, each sitting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" outmatching the Russell through greater than 2 percentage points because time.Disclaimer.