.The Russell 2000 might have an earnings problem.Though the small-cap mark got 10.1% in July, it's dropped about 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unstable relocate to the mark's total arrangement, with a price quote from Beauty Global presenting 40% of those companies possess unfavorable incomes." [Capitalists] have actually primarily resigned on their own to the simple fact that by being in the Russell 2000, I'm simply going to have to take the great with the poor," the firm's chief ETF planner said to CNBC's "ETF Upper hand" this week.To prevent the profitability pain, Baiocchi recommends capitalists prioritize premium companies, examining more careful exchange-traded funds such as his agency's mountain range O'Shares USA Small-Cap Premium Reward ETF Shares (OUSM)." The concept is premium providers that pay out and increase their rewards, and also essentially, have less volatility than their peers," he claimed. "It enables consultants and also real estate investors who have observed small limits go sideways for 5 years to become designated to a group that's lagged." In addition to its profits display screen, the fund has merely 107 inventories u00e2 $" a fraction of what is actually inside the Russell 2000. Its own leading three holdings are Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each resting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" outmatching the Russell through greater than 2 portion points in that time.Disclaimer.