.The Russell 2000 might possess an earnings problem.Though the small-cap index got 10.1% in July, it's gone down approximately 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi records the unstable transfer to the index's general arrangement, along with a price quote from Apollo Global showing 40% of those providers have negative revenues." [Financiers] have primarily resigned on their own to the truth that through residing in the Russell 2000, I'm merely visiting need to take the great along with the poor," the agency's principal ETF schemer informed CNBC's "ETF Upper hand" this week.To steer clear of the earnings burden, Baiocchi proposes investors prioritize premium business, considering even more careful exchange-traded funds such as his firm's ALPS O'Shares U.S. Small-Cap Top Quality Dividend ETF Reveals (OUSM)." The suggestion is actually quality business that pay as well as increase their rewards, and notably, have less volatility than their peers," he pointed out. "It makes it possible for specialists and also entrepreneurs who have seen tiny caps go sidewards for 5 years to be alloted to a category that's lagged." Aside from its own earnings monitor, the fund has simply 107 inventories u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each sitting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outperforming the Russell by much more than 2 percent factors because time.Disclaimer.