.The Russell 2000 may possess an earnings problem.Though the small-cap index acquired 10.1% in July, it is actually lost around 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi records the volatile relocate to the mark's total arrangement, with a quote coming from Beauty Global presenting 40% of those firms possess unfavorable earnings." [Real estate investors] have basically surrendered themselves to the reality that through being in the Russell 2000, I am actually merely heading to have to take the really good with the bad," the firm's main ETF schemer said to CNBC's "ETF Advantage" this week.To stay away from the productivity burden, Baiocchi recommends clients prioritize quality firms, examining more careful exchange-traded funds like his agency's O'Shares U.S. Small-Cap High Quality Dividend ETF Portions (OUSM)." The tip is actually premium providers that spend and also increase their dividends, and essentially, have much less dryness than their peers," he claimed. "It makes it possible for experts and real estate investors who have observed tiny hats go sidewards for 5 years to be alloted to a category that is actually lagged." Aside from its productivity monitor, the fund has only 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its own leading three holdings are actually Tradeweb Markets, Juniper Networks and also Old State International, each sitting at a roughly 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outperforming the Russell through more than 2 percent aspects during that time.Disclaimer.