.The Russell 2000 may possess a productivity problem.Though the small-cap index got 10.1% in July, it is actually fallen around 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unpredictable relocate to the index's overall arrangement, with a price quote from Apollo Global revealing 40% of those companies have adverse earnings." [Clients] have generally resigned on their own to the truth that through being in the Russell 2000, I am actually merely heading to must take the great with the poor," the company's chief ETF planner told CNBC's "ETF Edge" this week.To prevent the success bother, Baiocchi suggests clients focus on premium firms, checking out even more discerning exchange-traded funds such as his firm's ALPS O'Shares united state Small-Cap Top Quality Reward ETF Shares (OUSM)." The tip is top quality companies that spend as well as develop their returns, and also importantly, possess a lot less volatility than their peers," he claimed. "It allows specialists as well as financiers that have observed small caps go laterally for five years to become designated to a classification that is actually lagged." Along with its own profitability display screen, the fund includes merely 107 supplies u00e2 $" a portion of what's inside the Russell 2000. Its best 3 holdings are Tradeweb Markets, Juniper Networks as well as Old State International, each sitting at a roughly 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" surpassing the Russell by more than 2 portion points because time.Disclaimer.