.The Russell 2000 might have a profitability problem.Though the small-cap index acquired 10.1% in July, it's dropped around 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the unpredictable relocate to the mark's general arrangement, along with a quote from Apollo Global revealing 40% of those providers possess negative revenues." [Real estate investors] have primarily resigned themselves to the reality that through being in the Russell 2000, I'm only heading to need to take the really good along with the poor," the organization's principal ETF strategist informed CNBC's "ETF Advantage" this week.To avoid the profits nuisance, Baiocchi proposes investors focus on premium firms, examining more discerning exchange-traded funds like his organization's ALPS O'Shares U.S. Small-Cap Premium Reward ETF Allotments (OUSM)." The idea is actually top quality companies that pay out as well as increase their rewards, as well as notably, possess less dryness than their peers," he stated. "It permits advisors as well as clients who have actually seen little hats go sideways for 5 years to become allocated to a type that is actually delayed." In addition to its success screen, the fund has only 107 inventories u00e2 $" a portion of what's inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each sitting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" exceeding the Russell by more than 2 amount aspects because time.Disclaimer.