.The Russell 2000 might have a profitability problem.Though the small-cap mark gained 10.1% in July, it's fallen around 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable moves to the mark's total arrangement, with a quote coming from Apollo Global showing 40% of those companies possess unfavorable incomes." [Clients] have essentially surrendered on their own to the reality that through residing in the Russell 2000, I am actually merely mosting likely to need to take the great with the poor," the company's chief ETF schemer told CNBC's "ETF Advantage" this week.To stay clear of the profitability pain, Baiocchi suggests investors prioritize quality providers, looking at even more careful exchange-traded funds such as his organization's mountain range O'Shares U.S. Small-Cap Top Quality Returns ETF Portions (OUSM)." The suggestion is actually high quality business that pay and grow their rewards, and also essentially, possess much less dryness than their peers," he pointed out. "It enables consultants and also financiers that have actually viewed little caps go laterally for five years to be alloted to a type that is actually lagged." Besides its own productivity display screen, the fund has simply 107 sells u00e2 $" a portion of what is actually inside the Russell 2000. Its best three holdings are Tradeweb Markets, Juniper Networks and also Old Republic International, each sitting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outruning the Russell through greater than 2 percentage points during that time.Disclaimer.