.The Russell 2000 might possess a profits problem.Though the small-cap index acquired 10.1% in July, it is actually lost roughly 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi records the unstable moves to the index's general composition, with a quote from Beauty Global revealing 40% of those business have damaging incomes." [Real estate investors] have actually generally surrendered on their own to the reality that through remaining in the Russell 2000, I am actually just going to need to take the really good along with the negative," the company's main ETF schemer informed CNBC's "ETF Edge" this week.To steer clear of the profits pain, Baiocchi recommends capitalists focus on premium companies, considering more selective exchange-traded funds such as his agency's ALPS O'Shares U.S. Small-Cap Premium Reward ETF Portions (OUSM)." The suggestion is actually quality firms that pay out and also grow their returns, and importantly, have less dryness than their peers," he stated. "It permits advisors as well as clients who have actually seen tiny hats go sideways for five years to be designated to a group that's delayed." Along with its own earnings monitor, the fund contains simply 107 sells u00e2 $" a portion of what's inside the Russell 2000. Its best 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old State International, each sitting at a roughly 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" exceeding the Russell by greater than 2 percent factors during that time.Disclaimer.