.The Russell 2000 might have a success problem.Though the small-cap index obtained 10.1% in July, it is actually gone down about 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the unpredictable transfer to the index's overall composition, along with an estimation from Apollo Global revealing 40% of those companies possess negative incomes." [Financiers] have essentially resigned themselves to the truth that by being in the Russell 2000, I am actually just heading to have to take the excellent along with the negative," the agency's main ETF planner said to CNBC's "ETF Edge" this week.To stay away from the productivity bother, Baiocchi recommends capitalists focus on quality providers, checking out more discerning exchange-traded funds like his firm's ALPS O'Shares united state Small-Cap Quality Reward ETF Allotments (OUSM)." The tip is actually high quality companies that spend and also grow their returns, and also importantly, possess less volatility than their peers," he claimed. "It permits experts and also capitalists who have actually viewed little limits go laterally for five years to be assigned to a type that is actually delayed." Besides its own productivity display, the fund includes only 107 inventories u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks and also Old Commonwealth 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 date u00e2 $" outperforming the Russell through greater than 2 amount factors in that time.Disclaimer.