.The Russell 2000 might possess a success problem.Though the small-cap mark obtained 10.1% in July, it's fallen roughly 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi earns the inconsistent transfer to the mark's total composition, along with an estimation from Beauty Global revealing 40% of those companies have bad earnings." [Investors] have generally resigned on their own to the fact that by being in the Russell 2000, I'm merely heading to need to take the great with the negative," the agency's main ETF planner informed CNBC's "ETF Upper hand" this week.To avoid the productivity drag, Baiocchi proposes real estate investors focus on high quality providers, checking out more selective exchange-traded funds including his firm's O'Shares united state Small-Cap Premium Reward ETF Portions (OUSM)." The idea is actually quality business that spend and also increase their rewards, and significantly, possess much less dryness than their peers," he stated. "It makes it possible for specialists and also investors that have actually found tiny hats go sidewards for five years to become assigned to a type that is actually delayed." In addition to its own productivity monitor, the fund contains simply 107 supplies u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each resting at an approximately 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outshining the Russell by more than 2 amount factors in that time.Disclaimer.