.The Russell 2000 might have a productivity problem.Though the small-cap mark obtained 10.1% in July, it's lost around 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the inconsistent relocate to the mark's overall composition, with an estimate coming from Apollo Global showing 40% of those business have adverse earnings." [Capitalists] have actually primarily surrendered on their own to the simple fact that by being in the Russell 2000, I am actually simply mosting likely to must take the excellent along with the bad," the agency's chief ETF schemer said to CNBC's "ETF Upper hand" this week.To stay clear of the profits burden, Baiocchi suggests real estate investors focus on top quality firms, looking at additional selective exchange-traded funds including his firm's ALPS O'Shares U.S. Small-Cap Quality Returns ETF Portions (OUSM)." The tip is actually high quality business that pay for and expand their returns, as well as importantly, have less dryness than their peers," he stated. "It enables consultants as well as capitalists that have observed little limits go sidewards for 5 years to become alloted to a classification that's dragged." In addition to its own profitability screen, the fund consists of merely 107 stocks u00e2 $" a portion of what is actually inside the Russell 2000. Its leading three holdings are Tradeweb Markets, Juniper Networks and Old Republic 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 much more than 2 amount aspects in that time.Disclaimer.