.The Russell 2000 might possess a success problem.Though the small-cap mark gained 10.1% in July, it's gone down approximately 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable transfer to the index's overall arrangement, with an estimate from Apollo Global showing 40% of those firms have bad profits." [Entrepreneurs] have generally surrendered themselves to the simple fact that by being in the Russell 2000, I am actually just mosting likely to need to take the really good along with the bad," the company's chief ETF planner informed CNBC's "ETF Edge" this week.To stay away from the earnings bother, Baiocchi suggests capitalists prioritize premium firms, looking at even more discerning exchange-traded funds such as his firm's ALPS O'Shares U.S. Small-Cap Premium Returns ETF Reveals (OUSM)." The concept is premium companies that pay out as well as expand their rewards, and significantly, possess much less volatility than their peers," he pointed out. "It enables experts as well as clients who have found tiny limits go laterally for 5 years to be assigned to a type that's delayed." In addition to its own productivity display, the fund consists of just 107 sells u00e2 $" a fraction of what is actually inside the Russell 2000. Its leading three holdings are actually Tradeweb Markets, Juniper Networks and Old Commonwealth International, each sitting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" exceeding the Russell by more than 2 amount factors because time.Disclaimer.