.The Russell 2000 may have an earnings problem.Though the small-cap mark got 10.1% in July, it is actually lost roughly 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable relocate to the mark's overall arrangement, with a price quote from Beauty Global presenting 40% of those business have unfavorable profits." [Entrepreneurs] have primarily resigned on their own to the truth that by being in the Russell 2000, I am actually only visiting have to take the excellent along with the poor," the company's main ETF schemer said to CNBC's "ETF Advantage" this week.To stay away from the success drag, Baiocchi suggests real estate investors focus on top quality firms, looking at more particular exchange-traded funds including his agency's ALPS O'Shares USA Small-Cap High Quality Dividend ETF Reveals (OUSM)." The concept is premium companies that pay for and grow their returns, and notably, have much less dryness than their peers," he said. "It makes it possible for consultants as well as investors that have found small hats go sideways for 5 years to be alloted to a classification that is actually lagged." Aside from its productivity display screen, the fund includes merely 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its own best three holdings are actually Tradeweb Markets, Juniper Networks as well as 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 date u00e2 $" exceeding the Russell by more than 2 percent factors during that time.Disclaimer.