.The Russell 2000 might have a profitability problem.Though the small-cap mark acquired 10.1% in July, it's gone down roughly 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the volatile transfer to the mark's total composition, along with a quote from Apollo Global revealing 40% of those companies possess adverse earnings." [Financiers] have generally resigned themselves to the simple fact that through residing in the Russell 2000, I'm only mosting likely to must take the really good with the bad," the agency's main ETF schemer told CNBC's "ETF Advantage" this week.To stay clear of the success nuisance, Baiocchi suggests clients focus on quality business, taking a look at even more careful exchange-traded funds such as his company's ALPS O'Shares USA Small-Cap Top Quality Returns ETF Allotments (OUSM)." The suggestion is actually top quality providers that spend as well as expand their returns, and also importantly, possess less dryness than their peers," he said. "It enables experts as well as entrepreneurs who have viewed little hats go sidewards for five years to be assigned to a category that's delayed." Besides its profitability display screen, the fund has just 107 inventories u00e2 $" a fraction of what's inside the Russell 2000. Its own leading three holdings are actually Tradeweb Markets, Juniper Networks and also Old Commonwealth 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 $" exceeding the Russell by more than 2 percentage aspects in that time.Disclaimer.