.The Russell 2000 may possess an earnings problem.Though the small-cap index obtained 10.1% in July, it's gone down approximately 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the inconsistent moves to the mark's general composition, with an estimation coming from Apollo Global showing 40% of those firms possess damaging revenues." [Entrepreneurs] have basically surrendered themselves to the reality that by remaining in the Russell 2000, I am actually just going to must take the good with the negative," the agency's main ETF schemer said to CNBC's "ETF Upper hand" this week.To prevent the productivity drag, Baiocchi advises entrepreneurs prioritize top quality firms, looking at more careful exchange-traded funds including his company's ALPS O'Shares U.S. Small-Cap Premium Dividend ETF Allotments (OUSM)." The suggestion is actually top quality business that pay out as well as grow their dividends, and also importantly, possess less volatility than their peers," he stated. "It enables experts as well as entrepreneurs that have actually found small limits go sideways for 5 years to be assigned to a type that is actually dragged." Besides its own productivity display screen, the fund contains only 107 sells u00e2 $" a portion of what's inside the Russell 2000. Its leading three holdings are Tradeweb Markets, Juniper Networks and Old State International, each resting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" exceeding the Russell by greater than 2 amount factors in that time.Disclaimer.