.The Russell 2000 may possess a profitability problem.Though the small-cap mark gained 10.1% in July, it is actually gone down around 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the volatile moves to the index's general arrangement, with an estimate from Beauty Global presenting 40% of those providers possess negative revenues." [Entrepreneurs] have primarily resigned on their own to the fact that by residing in the Russell 2000, I am actually only going to must take the good with the poor," the company's main ETF schemer said to CNBC's "ETF Upper hand" this week.To steer clear of the success bother, Baiocchi recommends real estate investors prioritize high quality firms, considering even more selective exchange-traded funds including his agency's O'Shares U.S. Small-Cap Premium Dividend ETF Allotments (OUSM)." The suggestion is actually top quality providers that pay out and grow their rewards, and also significantly, have a lot less dryness than their peers," he mentioned. "It permits advisors and also investors who have seen little hats go laterally for 5 years to become assigned to a category that is actually delayed." In addition to its profitability display, the fund contains just 107 sells u00e2 $" a portion of what is actually inside the Russell 2000. Its best 3 holdings are actually Tradeweb Markets, Juniper Networks and also Old State International, each resting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" exceeding the Russell through greater than 2 portion aspects during that time.Disclaimer.