.The Russell 2000 may have an earnings problem.Though the small-cap index acquired 10.1% in July, it is actually fallen roughly 4% up until now in August, as of Thursday morning.ALPS’ Paul Baiocchi achieves the volatile transfer to the index’s overall composition, with an estimate coming from Apollo Global showing 40% of those business have adverse revenues.” [Investors] have actually basically resigned themselves to the truth that through residing in the Russell 2000, I’m just visiting need to take the good with the poor,” the firm’s chief ETF strategist informed CNBC’s “ETF Edge” this week.To avoid the success burden, Baiocchi proposes investors prioritize top quality business, taking a look at even more discerning exchange-traded funds like his organization’s ALPS O’Shares USA Small-Cap Top Quality Returns ETF Allotments (OUSM).” The suggestion is actually quality business that pay for and also grow their returns, as well as notably, possess less dryness than their peers,” he said. “It makes it possible for advisors as well as entrepreneurs that have seen small hats go laterally for five years to become allocated to a type that’s dragged.” In addition to its own success monitor, the fund contains simply 107 sells u00e2 $” a portion of what’s inside the Russell 2000. Its top three holdings are Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $” surpassing the Russell by much more than 2 percentage aspects because time.Disclaimer.