.The Russell 2000 may possess a productivity problem.Though the small-cap mark got 10.1% in July, it's dropped around 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi chalks up the unstable relocate to the index's overall arrangement, along with a quote from Apollo Global showing 40% of those providers have adverse earnings." [Real estate investors] have actually essentially surrendered themselves to the truth that through remaining in the Russell 2000, I am actually simply going to need to take the really good along with the negative," the firm's principal ETF planner said to CNBC's "ETF Edge" this week.To stay away from the profits pain, Baiocchi recommends real estate investors focus on premium business, looking at more selective exchange-traded funds such as his agency's O'Shares united state Small-Cap Quality Returns ETF Shares (OUSM)." The tip is actually quality firms that pay as well as develop their rewards, as well as notably, have less volatility than their peers," he said. "It enables advisors and entrepreneurs who have actually viewed small caps go sideways for five years to be allocated to a group that's lagged." Besides its success display, the fund contains only 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its own top 3 holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each resting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outperforming the Russell through greater than 2 percent factors because time.Disclaimer.