.The Russell 2000 might have a profitability problem.Though the small-cap mark got 10.1% in July, it is actually dropped approximately 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unstable relocate to the index's overall composition, along with an estimation from Apollo Global presenting 40% of those business possess unfavorable profits." [Capitalists] have generally resigned themselves to the simple fact that by residing in the Russell 2000, I'm simply visiting have to take the great with the negative," the agency's main ETF planner informed CNBC's "ETF Upper hand" this week.To stay away from the productivity bother, Baiocchi suggests financiers focus on premium firms, taking a look at more selective exchange-traded funds like his organization's ALPS O'Shares USA Small-Cap High Quality Dividend ETF Portions (OUSM)." The concept is quality business that pay out and grow their rewards, and also notably, have a lot less dryness than their peers," he claimed. "It makes it possible for consultants as well as capitalists who have observed small limits go sideways for five years to become allocated to a type that is actually dragged." Besides its earnings display screen, the fund has just 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its leading three holdings are actually Tradeweb Markets, Juniper Networks and also 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 time u00e2 $" exceeding the Russell by more than 2 percent aspects during that time.Disclaimer.