.The Russell 2000 might possess a profits problem.Though the small-cap index acquired 10.1% in July, it is actually fallen about 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi chalks up the inconsistent transfer to the mark's total composition, with an estimation coming from Apollo Global showing 40% of those providers possess adverse incomes." [Investors] have actually generally surrendered themselves to the reality that by being in the Russell 2000, I'm only mosting likely to need to take the great along with the poor," the organization's chief ETF planner informed CNBC's "ETF Upper hand" this week.To stay away from the productivity burden, Baiocchi recommends capitalists prioritize premium firms, taking a look at even more careful exchange-traded funds like his company's O'Shares U.S. Small-Cap Top Quality Reward ETF Reveals (OUSM)." The tip is high quality companies that spend as well as expand their dividends, and also importantly, have much less dryness than their peers," he said. "It allows consultants as well as investors that have seen tiny hats go laterally for 5 years to become assigned to a group that is actually delayed." In addition to its earnings display, the fund includes just 107 stocks u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks as well as Old Republic International, each resting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" outshining the Russell through greater than 2 percent points during that time.Disclaimer.