.The Russell 2000 might possess an earnings problem.Though the small-cap mark obtained 10.1% in July, it's gone down roughly 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unstable transfer to the mark's overall composition, with an estimation coming from Apollo Global revealing 40% of those firms have damaging revenues." [Clients] have generally surrendered themselves to the reality that through being in the Russell 2000, I'm only visiting have to take the great along with the negative," the company's chief ETF planner informed CNBC's "ETF Advantage" this week.To stay away from the success bother, Baiocchi recommends entrepreneurs focus on high quality business, looking at more selective exchange-traded funds such as his company's mountain range O'Shares U.S. Small-Cap Premium Returns ETF Allotments (OUSM)." The concept is high quality providers that spend as well as grow their rewards, and also importantly, possess much less dryness than their peers," he said. "It permits advisors and investors that have actually observed tiny limits go sideways for 5 years to be designated to a classification that's delayed." Along with its own productivity monitor, the fund consists of only 107 inventories u00e2 $" a portion of what's inside the Russell 2000. Its best 3 holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each sitting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" exceeding the Russell through much more than 2 percentage factors because time.Disclaimer.