.The Russell 2000 may possess a profitability problem.Though the small-cap index acquired 10.1% in July, it's dropped around 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the volatile moves to the index's overall arrangement, along with a quote from Beauty Global revealing 40% of those business possess bad revenues." [Clients] have basically surrendered themselves to the truth that by being in the Russell 2000, I'm simply going to need to take the good along with the poor," the firm's main ETF schemer informed CNBC's "ETF Advantage" this week.To prevent the profitability pain, Baiocchi proposes entrepreneurs prioritize quality providers, considering additional discerning exchange-traded funds like his agency's ALPS O'Shares united state Small-Cap Top Quality Returns ETF Reveals (OUSM)." The suggestion is quality providers that spend as well as develop their rewards, and notably, have much less volatility than their peers," he said. "It makes it possible for specialists and financiers that have seen tiny caps go sideways for five years to become designated to a classification that's delayed." Besides its own profitability display screen, the fund contains only 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its leading 3 holdings are actually Tradeweb Markets, Juniper Networks and Old Republic International, each resting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outmatching the Russell through greater than 2 percentage points because time.Disclaimer.