.The Russell 2000 may possess a profits problem.Though the small-cap index acquired 10.1% in July, it is actually lost roughly 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi earns the volatile moves to the mark's total arrangement, with an estimation coming from Apollo Global revealing 40% of those business possess bad incomes." [Real estate investors] have basically resigned on their own to the fact that through being in the Russell 2000, I'm merely heading to need to take the excellent along with the poor," the organization's principal ETF strategist told CNBC's "ETF Advantage" this week.To steer clear of the profits burden, Baiocchi advises real estate investors focus on premium providers, examining additional discerning exchange-traded funds including his organization's ALPS O'Shares U.S. Small-Cap Quality Dividend ETF Reveals (OUSM)." The concept is actually high quality firms that spend and also increase their dividends, and essentially, have less dryness than their peers," he mentioned. "It allows advisors as well as entrepreneurs who have found tiny limits go sidewards for 5 years to become designated to a type that is actually lagged." Along with its own profitability display, the fund consists of simply 107 sells u00e2 $" a portion of what is actually inside the Russell 2000. Its own best three holdings are Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each sitting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" surpassing the Russell by greater than 2 amount factors because time.Disclaimer.