.The Russell 2000 might have an earnings problem.Though the small-cap index obtained 10.1% in July, it is actually lost around 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the inconsistent moves to the index's overall composition, along with an estimation from Apollo Global revealing 40% of those firms possess bad earnings." [Real estate investors] have generally surrendered themselves to the simple fact that by remaining in the Russell 2000, I'm just going to need to take the good along with the bad," the company's principal ETF planner informed CNBC's "ETF Edge" this week.To steer clear of the productivity nuisance, Baiocchi proposes entrepreneurs focus on top quality business, taking a look at even more discerning exchange-traded funds such as his company's ALPS O'Shares USA Small-Cap Premium Returns ETF Reveals (OUSM)." The idea is actually high quality companies that pay for and also develop their returns, and notably, possess much less dryness than their peers," he pointed out. "It allows experts and also real estate investors that have actually found little caps go laterally for 5 years to become allocated to a group that is actually delayed." In addition to its earnings monitor, the fund has simply 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its own leading three holdings are Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outruning the Russell through much more than 2 percent factors because time.Disclaimer.