.The Russell 2000 may possess a profits problem.Though the small-cap mark acquired 10.1% in July, it's gone down about 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the unstable moves to the index's general arrangement, along with an estimation from Beauty Global presenting 40% of those providers possess bad incomes." [Clients] have actually primarily resigned on their own to the simple fact that by residing in the Russell 2000, I'm simply heading to need to take the good along with the bad," the firm's chief ETF strategist said to CNBC's "ETF Advantage" this week.To stay away from the profitability nuisance, Baiocchi recommends financiers focus on quality companies, looking at even more particular exchange-traded funds like his organization's mountain range O'Shares U.S. Small-Cap High Quality Dividend ETF Portions (OUSM)." The tip is top quality business that pay for as well as expand their dividends, as well as notably, possess less dryness than their peers," he claimed. "It permits consultants and also capitalists that have found tiny hats go sidewards for five years to be allocated to a category that's lagged." Along with its own productivity screen, the fund contains just 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its own best 3 holdings are actually Tradeweb Markets, Juniper Networks and Old State International, each resting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" outruning the Russell through more than 2 percent factors because time.Disclaimer.