.The Russell 2000 may possess a success problem.Though the small-cap mark acquired 10.1% in July, it's lost around 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi records the unstable relocate to the mark's general composition, along with an estimation coming from Beauty Global presenting 40% of those business possess bad incomes." [Clients] have actually basically resigned themselves to the simple fact that by residing in the Russell 2000, I am actually simply visiting must take the good along with the poor," the company's main ETF planner told CNBC's "ETF Edge" this week.To avoid the productivity nuisance, Baiocchi proposes capitalists prioritize high quality companies, taking a look at even more particular exchange-traded funds like his agency's mountain range O'Shares united state Small-Cap Quality Dividend ETF Shares (OUSM)." The idea is actually high quality firms that spend and increase their rewards, as well as essentially, have less dryness than their peers," he claimed. "It enables consultants and entrepreneurs who have found tiny caps go sidewards for five years to become assigned to a type that is actually lagged." In addition to its profits display, the fund includes just 107 inventories u00e2 $" a fraction of what is actually inside the Russell 2000. Its leading three 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 down 1.5% month to day u00e2 $" outperforming the Russell by much more than 2 percent points in that time.Disclaimer.