.The Russell 2000 may have a profitability problem.Though the small-cap mark obtained 10.1% in July, it is actually fallen about 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unpredictable moves to the mark's general composition, with an estimation from Beauty Global revealing 40% of those business have adverse revenues." [Clients] have actually basically resigned on their own to the simple fact that by being in the Russell 2000, I'm just visiting need to take the good along with the negative," the firm's principal ETF strategist said to CNBC's "ETF Upper hand" this week.To stay clear of the success bother, Baiocchi recommends entrepreneurs focus on top quality firms, looking at more discerning exchange-traded funds including his firm's mountain range O'Shares USA Small-Cap Premium Returns ETF Shares (OUSM)." The concept is high quality companies that pay out and expand their returns, and also essentially, possess much less dryness than their peers," he said. "It allows experts and also financiers who have viewed little limits go sideways for 5 years to become allocated to a type that is actually dragged." Besides its own success screen, the fund includes simply 107 stocks u00e2 $" a fraction of what is actually inside the Russell 2000. Its leading 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each sitting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outshining the Russell by greater than 2 amount factors because time.Disclaimer.