.The Russell 2000 might have an earnings problem.Though the small-cap index got 10.1% in July, it's lost about 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable transfer to the mark's overall composition, with a quote from Beauty Global revealing 40% of those business have damaging revenues." [Entrepreneurs] have actually essentially surrendered on their own to the truth that through residing in the Russell 2000, I am actually just going to have to take the really good with the bad," the firm's main ETF planner told CNBC's "ETF Upper hand" this week.To prevent the profits burden, Baiocchi proposes real estate investors prioritize top quality companies, considering additional selective exchange-traded funds including his organization's ALPS O'Shares united state Small-Cap High Quality Reward ETF Reveals (OUSM)." The tip is high quality companies that spend as well as increase their rewards, and also importantly, have much less volatility than their peers," he claimed. "It permits consultants and entrepreneurs that have viewed little hats go laterally for five years to be designated to a category that's lagged." In addition to its own profits display screen, the fund includes merely 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks and Old State International, each resting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outmatching the Russell through greater than 2 portion points in that time.Disclaimer.