.The Russell 2000 may possess a profits problem.Though the small-cap mark obtained 10.1% in July, it's lost roughly 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unpredictable relocate to the mark's total composition, along with a quote coming from Apollo Global revealing 40% of those business possess negative earnings." [Entrepreneurs] have basically surrendered on their own to the fact that by residing in the Russell 2000, I am actually just visiting need to take the great with the bad," the company's chief ETF schemer told CNBC's "ETF Advantage" this week.To prevent the success drag, Baiocchi advises investors focus on quality providers, taking a look at even more discerning exchange-traded funds including his company's ALPS O'Shares USA Small-Cap Premium Dividend ETF Shares (OUSM)." The suggestion is actually quality firms that pay for as well as develop their dividends, and also essentially, have much less volatility than their peers," he said. "It enables consultants and also investors that have viewed little limits go sideways for five years to be allocated to a group that is actually lagged." In addition to its own profits monitor, the fund has just 107 stocks u00e2 $" a fraction of what's inside the Russell 2000. Its leading 3 holdings are actually Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outperforming the Russell by much more than 2 amount factors during that time.Disclaimer.