.The Russell 2000 might possess a productivity problem.Though the small-cap index gained 10.1% in July, it's lost roughly 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable transfer to the mark's overall composition, along with a price quote from Beauty Global presenting 40% of those firms have unfavorable revenues." [Real estate investors] have generally surrendered on their own to the reality that by being in the Russell 2000, I'm only heading to have to take the great with the poor," the agency's principal ETF strategist said to CNBC's "ETF Upper hand" this week.To stay clear of the success nuisance, Baiocchi suggests clients prioritize quality firms, checking out more discerning exchange-traded funds such as his firm's ALPS O'Shares USA Small-Cap Premium Reward ETF Shares (OUSM)." The tip is quality companies that pay and grow their rewards, and essentially, possess much less volatility than their peers," he claimed. "It enables consultants and capitalists who have observed tiny caps go laterally for five years to become allocated to a group that is actually dragged." Along with its profits screen, the fund has simply 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its best 3 holdings are Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outshining the Russell by more than 2 portion points during that time.Disclaimer.