.The Russell 2000 might have a profitability problem.Though the small-cap index acquired 10.1% in July, it is actually gone down around 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the unpredictable relocate to the index's general arrangement, along with a quote coming from Apollo Global showing 40% of those business possess negative incomes." [Real estate investors] have actually basically surrendered themselves to the simple fact that through residing in the Russell 2000, I am actually just visiting must take the good along with the poor," the firm's principal ETF strategist informed CNBC's "ETF Advantage" this week.To steer clear of the success pain, Baiocchi advises real estate investors prioritize premium providers, taking a look at even more selective exchange-traded funds like his organization's ALPS O'Shares U.S. Small-Cap Premium Reward ETF Portions (OUSM)." The suggestion is actually premium firms that spend as well as develop their rewards, as well as importantly, have less volatility than their peers," he said. "It allows consultants as well as capitalists that have actually observed little limits go sidewards for five years to be alloted to a type that is actually delayed." Aside from its productivity screen, the fund includes simply 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its own best 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each resting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" exceeding the Russell through greater than 2 amount points during that time.Disclaimer.