.The Russell 2000 might possess a productivity problem.Though the small-cap index obtained 10.1% in July, it is actually lost around 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi records the unstable relocate to the mark's general arrangement, with a price quote from Apollo Global presenting 40% of those companies have damaging profits." [Investors] have generally resigned themselves to the fact that by remaining in the Russell 2000, I'm just visiting have to take the excellent along with the poor," the agency's chief ETF schemer informed CNBC's "ETF Advantage" this week.To prevent the success nuisance, Baiocchi suggests real estate investors prioritize top quality business, taking a look at additional discerning exchange-traded funds such as his organization's mountain range O'Shares united state Small-Cap High Quality Returns ETF Allotments (OUSM)." The suggestion is top quality firms that pay for as well as develop their returns, and notably, possess less volatility than their peers," he pointed out. "It permits advisors and also entrepreneurs that have seen little hats go laterally for 5 years to become allocated to a category that's dragged." Besides its own profits monitor, the fund contains only 107 inventories u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best three holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth 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 day u00e2 $" exceeding the Russell through more than 2 percentage aspects during that time.Disclaimer.