.The Russell 2000 might have an earnings problem.Though the small-cap index acquired 10.1% in July, it is actually lost approximately 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi earns the inconsistent transfer to the mark's total arrangement, with an estimation coming from Beauty Global presenting 40% of those companies possess negative incomes." [Clients] have actually basically surrendered themselves to the fact that through being in the Russell 2000, I am actually merely mosting likely to must take the great with the bad," the agency's chief ETF strategist said to CNBC's "ETF Advantage" this week.To stay clear of the earnings nuisance, Baiocchi advises entrepreneurs prioritize top quality providers, checking out more careful exchange-traded funds like his firm's O'Shares U.S. Small-Cap Premium Dividend ETF Allotments (OUSM)." The suggestion is actually premium business that pay out and also expand their returns, and also importantly, possess much less volatility than their peers," he claimed. "It enables consultants and also investors that have actually found little caps go laterally for five years to become allocated to a group that's delayed." Besides its own earnings display, the fund includes just 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its top 3 holdings are Tradeweb Markets, Juniper Networks and Old Republic International, each resting at an approximately 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" exceeding the Russell through much more than 2 amount factors during that time.Disclaimer.