.The Russell 2000 may possess an earnings problem.Though the small-cap mark obtained 10.1% in July, it is actually gone down around 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi chalks up the inconsistent moves to the index's overall arrangement, with a quote from Beauty Global revealing 40% of those providers have damaging revenues." [Investors] have primarily surrendered on their own to the truth that by residing in the Russell 2000, I am actually just going to have to take the good along with the poor," the company's chief ETF planner informed CNBC's "ETF Upper hand" this week.To prevent the profitability nuisance, Baiocchi suggests capitalists prioritize high quality business, checking out even more selective exchange-traded funds such as his company's O'Shares united state Small-Cap Premium Dividend ETF Shares (OUSM)." The suggestion is actually top quality providers that pay out and also increase their dividends, and also significantly, possess less volatility than their peers," he said. "It permits experts and clients that have found little limits go laterally for 5 years to become alloted to a type that is actually delayed." In addition to its profits monitor, the fund consists of simply 107 sells u00e2 $" a fraction of what's inside the Russell 2000. Its own top 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth 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 day u00e2 $" outruning the Russell by more than 2 percent points during that time.Disclaimer.