.The Russell 2000 might have a productivity problem.Though the small-cap mark got 10.1% in July, it's lost roughly 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi chalks up the inconsistent moves to the mark's overall composition, with an estimate coming from Beauty Global showing 40% of those business possess unfavorable revenues." [Real estate investors] have actually primarily surrendered on their own to the fact that through being in the Russell 2000, I am actually just mosting likely to must take the excellent with the bad," the firm's chief ETF schemer said to CNBC's "ETF Upper hand" this week.To avoid the success burden, Baiocchi proposes investors prioritize quality providers, taking a look at more selective exchange-traded funds such as his firm's mountain range O'Shares united state Small-Cap Quality Returns ETF Allotments (OUSM)." The suggestion is actually quality business that pay as well as expand their dividends, and notably, have less dryness than their peers," he stated. "It makes it possible for consultants as well as capitalists that have actually seen little limits go laterally for 5 years to be alloted to a type that is actually delayed." Along with its own profitability display screen, the fund contains merely 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its own best 3 holdings are actually Tradeweb Markets, Juniper Networks and Old Commonwealth International, each resting at a roughly 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 much more than 2 portion aspects during that time.Disclaimer.