.The Russell 2000 might possess a success problem.Though the small-cap mark acquired 10.1% in July, it is actually gone down about 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the inconsistent moves to the mark's general composition, with a quote from Beauty Global presenting 40% of those companies have bad revenues." [Financiers] have actually primarily resigned on their own to the truth that through residing in the Russell 2000, I'm merely going to have to take the great along with the negative," the company's principal ETF schemer informed CNBC's "ETF Upper hand" this week.To avoid the profits drag, Baiocchi advises capitalists focus on top quality firms, considering additional discerning exchange-traded funds like his agency's mountain range O'Shares USA Small-Cap Premium Dividend ETF Portions (OUSM)." The suggestion is high quality providers that pay for and also grow their returns, and also significantly, have much less volatility than their peers," he said. "It enables specialists as well as investors who have actually observed tiny hats go sidewards for 5 years to be alloted to a classification that's lagged." Aside from its own profits display, the fund has just 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its own leading 3 holdings are actually Tradeweb Markets, Juniper Networks and Old State International, each resting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" surpassing the Russell by more than 2 percentage aspects because time.Disclaimer.