.The Russell 2000 might possess a success problem.Though the small-cap mark obtained 10.1% in July, it's fallen approximately 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi records the unstable relocate to the index's overall composition, along with a quote from Apollo Global presenting 40% of those business possess unfavorable earnings." [Financiers] have generally surrendered on their own to the simple fact that by residing in the Russell 2000, I'm simply mosting likely to must take the great along with the negative," the company's principal ETF strategist said to CNBC's "ETF Upper hand" this week.To stay clear of the earnings nuisance, Baiocchi advises capitalists focus on top quality business, examining even more selective exchange-traded funds including his organization's ALPS O'Shares united state Small-Cap Top Quality Reward ETF Allotments (OUSM)." The concept is quality business that pay out as well as expand their dividends, and importantly, possess less dryness than their peers," he mentioned. "It enables consultants as well as capitalists who have found tiny limits go sidewards for 5 years to become alloted to a classification that is actually dragged." In addition to its own profitability display screen, the fund consists of just 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its own top 3 holdings are Tradeweb Markets, Juniper Networks and Old Republic International, each sitting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outshining the Russell through more than 2 portion points because time.Disclaimer.