.The Russell 2000 may possess a profits problem.Though the small-cap mark acquired 10.1% in July, it is actually dropped roughly 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the inconsistent relocate to the mark's total arrangement, with a price quote coming from Apollo Global revealing 40% of those business possess damaging incomes." [Clients] have essentially surrendered themselves to the fact that by remaining in the Russell 2000, I am actually simply going to need to take the great along with the poor," the organization's main ETF strategist told CNBC's "ETF Advantage" this week.To prevent the profitability pain, Baiocchi proposes financiers prioritize premium providers, taking a look at more discerning exchange-traded funds like his agency's ALPS O'Shares united state Small-Cap Quality Returns ETF Shares (OUSM)." The idea is actually quality companies that spend as well as increase their dividends, and also notably, possess much less dryness than their peers," he pointed out. "It enables advisors and also capitalists who have actually viewed tiny limits go sideways for 5 years to be assigned to a category that's dragged." Besides its profits monitor, the fund has only 107 stocks u00e2 $" a portion of what is actually inside the Russell 2000. Its own leading 3 holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each resting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outperforming the Russell through greater than 2 percent factors in that time.Disclaimer.