.The Russell 2000 might possess an earnings problem.Though the small-cap index got 10.1% in July, it is actually fallen about 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the inconsistent moves to the mark's overall composition, along with a quote coming from Beauty Global showing 40% of those firms have unfavorable revenues." [Real estate investors] have generally resigned on their own to the fact that through residing in the Russell 2000, I'm just going to must take the really good with the negative," the firm's chief ETF strategist told CNBC's "ETF Advantage" this week.To prevent the success burden, Baiocchi advises clients prioritize quality firms, examining additional selective exchange-traded funds such as his agency's ALPS O'Shares united state Small-Cap Premium Dividend ETF Shares (OUSM)." The idea is actually top quality firms that pay for and develop their rewards, and also notably, have less dryness than their peers," he said. "It makes it possible for consultants and financiers who have seen little limits go sidewards for 5 years to be alloted to a classification that is actually delayed." Besides its own productivity monitor, the fund has just 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its leading 3 holdings are Tradeweb Markets, Juniper Networks and Old State International, each sitting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outshining the Russell through more than 2 portion aspects in that time.Disclaimer.