.The Russell 2000 may have a profitability problem.Though the small-cap mark gained 10.1% in July, it is actually dropped roughly 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi records the unpredictable relocate to the mark's total arrangement, with a price quote coming from Apollo Global showing 40% of those firms have unfavorable incomes." [Investors] have actually primarily resigned themselves to the fact that by remaining in the Russell 2000, I'm simply visiting have to take the good with the poor," the agency's chief ETF schemer said to CNBC's "ETF Advantage" this week.To avoid the productivity pain, Baiocchi suggests real estate investors focus on high quality providers, examining additional careful exchange-traded funds such as his company's mountain range O'Shares USA Small-Cap High Quality Dividend ETF Allotments (OUSM)." The tip is high quality providers that pay out and also develop their returns, and also importantly, have less volatility than their peers," he claimed. "It makes it possible for experts and investors who have seen little hats go sideways for five years to become alloted to a classification that is actually lagged." Along with its own earnings display, the fund has simply 107 sells u00e2 $" a portion of what is actually inside the Russell 2000. Its best three holdings are actually Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each sitting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" surpassing the Russell by much more than 2 portion aspects in that time.Disclaimer.