.The Russell 2000 might possess a productivity problem.Though the small-cap mark gained 10.1% in July, it is actually fallen about 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unpredictable relocate to the mark's overall arrangement, along with a price quote coming from Beauty Global presenting 40% of those companies have adverse profits." [Clients] have primarily surrendered themselves to the fact that by being in the Russell 2000, I am actually just visiting have to take the great along with the poor," the organization's main ETF planner told CNBC's "ETF Edge" this week.To steer clear of the profits nuisance, Baiocchi advises capitalists prioritize quality business, looking at additional selective exchange-traded funds including his agency's ALPS O'Shares U.S. Small-Cap Quality Returns ETF Reveals (OUSM)." The tip is actually quality business that spend as well as expand their dividends, and notably, possess less dryness than their peers," he stated. "It permits advisors and entrepreneurs who have actually found tiny limits go sidewards for 5 years to become designated to a group that's lagged." Along with its productivity display screen, the fund includes just 107 sells u00e2 $" a fraction of what is actually inside the Russell 2000. Its own top 3 holdings are actually 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 actually down 1.5% month to time u00e2 $" outshining the Russell by greater than 2 portion points during that time.Disclaimer.