.The Russell 2000 may possess a productivity problem.Though the small-cap mark obtained 10.1% in July, it is actually lost roughly 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi records the unpredictable moves to the index's general composition, along with an estimation coming from Beauty Global showing 40% of those companies have adverse revenues." [Investors] have basically resigned on their own to the truth that by remaining in the Russell 2000, I am actually only mosting likely to must take the great with the bad," the firm's chief ETF strategist said to CNBC's "ETF Edge" this week.To prevent the earnings bother, Baiocchi proposes financiers prioritize high quality companies, looking at additional discerning exchange-traded funds like his organization's O'Shares united state Small-Cap Premium Returns ETF Allotments (OUSM)." The suggestion is top quality providers that pay and increase their dividends, and notably, have much less dryness than their peers," he mentioned. "It allows consultants and financiers who have found little limits go sidewards for five years to become allocated to a type that is actually delayed." Along with its own productivity display, the fund includes simply 107 stocks u00e2 $" a fraction of what's inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each sitting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outruning the Russell through greater than 2 amount factors during that time.Disclaimer.