.The Russell 2000 may possess a profits problem.Though the small-cap mark gained 10.1% in July, it's dropped around 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the volatile relocate to the index's overall arrangement, along with an estimate coming from Apollo Global presenting 40% of those providers possess bad incomes." [Entrepreneurs] have generally surrendered themselves to the simple fact that through being in the Russell 2000, I am actually just going to must take the excellent along with the negative," the company's principal ETF strategist informed CNBC's "ETF Advantage" this week.To steer clear of the profits drag, Baiocchi proposes real estate investors prioritize quality business, checking out more particular exchange-traded funds including his organization's mountain range O'Shares U.S. Small-Cap Top Quality Dividend ETF Reveals (OUSM)." The idea is high quality providers that pay for and also develop their rewards, and also importantly, have a lot less dryness than their peers," he claimed. "It allows advisors as well as entrepreneurs that have actually observed small hats go sideways for five years to be alloted to a category that's delayed." Along with its own productivity monitor, the fund has just 107 sells u00e2 $" a portion of what is actually inside the Russell 2000. Its own leading 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each resting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outperforming the Russell by greater than 2 portion aspects during that time.Disclaimer.