.The Russell 2000 might possess a productivity problem.Though the small-cap mark got 10.1% in July, it's lost approximately 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi records the volatile relocate to the index's total arrangement, along with a price quote coming from Apollo Global presenting 40% of those business have unfavorable incomes." [Investors] have actually essentially resigned themselves to the fact that through remaining in the Russell 2000, I'm just heading to must take the excellent with the poor," the organization's chief ETF planner said to CNBC's "ETF Upper hand" this week.To stay away from the profitability bother, Baiocchi recommends clients focus on top quality companies, taking a look at additional careful exchange-traded funds like his firm's mountain range O'Shares U.S. Small-Cap High Quality Reward ETF Shares (OUSM)." The suggestion is quality business that pay and also increase their rewards, and essentially, have less dryness than their peers," he mentioned. "It allows advisors as well as real estate investors who have actually seen small caps go sideways for 5 years to be designated to a category that's delayed." Besides its own success monitor, the fund consists of just 107 supplies u00e2 $" a fraction of what is actually inside the Russell 2000. Its own leading 3 holdings are Tradeweb Markets, Juniper Networks and Old State International, each sitting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outruning the Russell by much more than 2 amount factors in that time.Disclaimer.