.The Russell 2000 might have a productivity problem.Though the small-cap mark obtained 10.1% in July, it is actually gone down approximately 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi earns the volatile transfer to the index's total composition, along with an estimation from Apollo Global revealing 40% of those business have negative earnings." [Capitalists] have actually basically resigned on their own to the simple fact that through remaining in the Russell 2000, I am actually only going to need to take the good along with the bad," the agency's chief ETF planner informed CNBC's "ETF Upper hand" this week.To prevent the success nuisance, Baiocchi proposes real estate investors prioritize premium firms, taking a look at additional particular exchange-traded funds like his company's ALPS O'Shares U.S. Small-Cap Top Quality Dividend ETF Portions (OUSM)." The suggestion is actually high quality business that pay out and expand their returns, as well as importantly, possess a lot less volatility than their peers," he mentioned. "It permits specialists as well as real estate investors who have seen little limits go sidewards for five years to become alloted to a classification that is actually delayed." In addition to its earnings screen, the fund consists of simply 107 stocks u00e2 $" a portion of what is actually inside the Russell 2000. Its own top three holdings are Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each sitting 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 $" exceeding the Russell by more than 2 amount factors during that time.Disclaimer.