.The Russell 2000 might possess a success problem.Though the small-cap index obtained 10.1% in July, it is actually gone down about 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable moves to the index's total arrangement, along with an estimation from Apollo Global showing 40% of those companies have unfavorable earnings." [Entrepreneurs] have actually essentially resigned themselves to the fact that by remaining in the Russell 2000, I'm merely visiting have to take the excellent with the poor," the firm's chief ETF strategist told CNBC's "ETF Advantage" this week.To stay away from the productivity burden, Baiocchi proposes financiers focus on quality providers, considering even more careful exchange-traded funds such as his organization's mountain range O'Shares U.S. Small-Cap Premium Reward ETF Portions (OUSM)." The concept is premium firms that spend as well as develop their dividends, and significantly, possess less dryness than their peers," he pointed out. "It permits experts and entrepreneurs that have found tiny limits go sideways for 5 years to be alloted to a category that's lagged." In addition to its profits display screen, the fund includes merely 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its own leading 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Republic International, each sitting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outshining the Russell by greater than 2 percentage factors because time.Disclaimer.