.The Russell 2000 may possess a productivity problem.Though the small-cap mark gained 10.1% in July, it's gone down approximately 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi records the inconsistent relocate to the mark's general arrangement, with a price quote coming from Beauty Global presenting 40% of those companies possess unfavorable incomes." [Financiers] have essentially resigned themselves to the truth that through remaining in the Russell 2000, I am actually only heading to must take the good along with the negative," the firm's chief ETF planner told CNBC's "ETF Upper hand" this week.To avoid the success pain, Baiocchi suggests entrepreneurs prioritize top quality business, looking at even more selective exchange-traded funds including his firm's O'Shares united state Small-Cap Top Quality Returns ETF Portions (OUSM)." The tip is quality business that spend as well as expand their rewards, and essentially, possess less dryness than their peers," he stated. "It allows specialists and clients that have viewed tiny limits go sidewards for 5 years to be designated to a type that's lagged." Aside from its own profitability screen, the fund includes merely 107 inventories u00e2 $" a portion of what's inside the Russell 2000. Its own leading three holdings are actually Tradeweb Markets, Juniper Networks and Old Republic 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 time u00e2 $" outperforming the Russell through much more than 2 portion points during that time.Disclaimer.