.The Russell 2000 may possess a productivity problem.Though the small-cap mark obtained 10.1% in July, it's lost roughly 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the volatile transfer to the index's overall composition, along with an estimate from Apollo Global presenting 40% of those business possess negative revenues." [Real estate investors] have essentially resigned on their own to the reality that by residing in the Russell 2000, I am actually merely going to need to take the great along with the bad," the firm's main ETF schemer informed CNBC's "ETF Advantage" this week.To stay clear of the success bother, Baiocchi suggests clients prioritize quality firms, looking at additional discerning exchange-traded funds including his firm's mountain range O'Shares USA Small-Cap Top Quality Reward ETF Allotments (OUSM)." The concept is quality companies that pay for as well as increase their returns, and essentially, possess a lot less dryness than their peers," he stated. "It allows consultants and also financiers that have actually viewed small caps go laterally for five years to become designated to a category that's lagged." Besides its productivity screen, the fund contains merely 107 sells u00e2 $" a fraction of what is actually inside the Russell 2000. Its top three holdings are actually Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outshining the Russell by greater than 2 amount aspects during that time.Disclaimer.