.The Russell 2000 may have a profits problem.Though the small-cap mark acquired 10.1% in July, it is actually lost roughly 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the unpredictable moves to the index's overall composition, along with an estimation coming from Beauty Global revealing 40% of those providers have bad revenues." [Clients] have actually primarily surrendered on their own to the reality that through residing in the Russell 2000, I am actually only mosting likely to have to take the great along with the poor," the firm's principal ETF strategist said to CNBC's "ETF Upper hand" this week.To stay clear of the success nuisance, Baiocchi recommends investors prioritize high quality providers, taking a look at additional particular exchange-traded funds including his organization's O'Shares U.S. Small-Cap Premium Returns ETF Shares (OUSM)." The tip is actually quality firms that pay and also expand their returns, and also importantly, possess much less dryness than their peers," he claimed. "It makes it possible for experts and financiers that have observed small limits go sidewards for five years to become alloted to a category that's delayed." In addition to its success screen, the fund has just 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its best three holdings are Tradeweb Markets, Juniper Networks and Old State 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 day u00e2 $" outperforming the Russell through much more than 2 percentage points because time.Disclaimer.