.The Russell 2000 might have a productivity problem.Though the small-cap mark obtained 10.1% in July, it is actually lost about 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi records the unpredictable transfer to the mark's overall composition, along with a price quote from Beauty Global revealing 40% of those companies have damaging revenues." [Capitalists] have actually generally resigned on their own to the truth that by remaining in the Russell 2000, I'm merely mosting likely to have to take the great along with the bad," the organization's chief ETF schemer said to CNBC's "ETF Edge" this week.To stay clear of the success pain, Baiocchi suggests financiers prioritize top quality business, checking out additional selective exchange-traded funds like his organization's O'Shares U.S. Small-Cap High Quality Returns ETF Portions (OUSM)." The idea is actually quality providers that pay and also develop their rewards, and also notably, possess a lot less volatility than their peers," he said. "It enables consultants and real estate investors who have found tiny hats go laterally for 5 years to become allocated to a classification that's dragged." Along with its own productivity screen, the fund includes just 107 inventories u00e2 $" a fraction of what's inside the Russell 2000. Its top three holdings are Tradeweb Markets, Juniper Networks and also Old Republic International, each sitting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outperforming the Russell through much more than 2 percentage factors during that time.Disclaimer.