.The Russell 2000 may have a productivity problem.Though the small-cap index gained 10.1% in July, it's fallen about 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unstable transfer to the mark's total arrangement, with a quote coming from Apollo Global showing 40% of those providers have negative revenues." [Financiers] have primarily surrendered themselves to the truth that through remaining in the Russell 2000, I am actually simply going to need to take the good with the bad," the agency's principal ETF strategist told CNBC's "ETF Upper hand" this week.To prevent the profits burden, Baiocchi advises financiers prioritize quality firms, looking at additional selective exchange-traded funds like his firm's ALPS O'Shares united state Small-Cap Quality Returns ETF Reveals (OUSM)." The tip is actually premium firms that pay for and also grow their rewards, and also essentially, have less volatility than their peers," he mentioned. "It makes it possible for advisors and investors that have actually seen little limits go sidewards for 5 years to become allocated to a classification that's delayed." Along with its own profitability monitor, the fund has just 107 inventories u00e2 $" a fraction of what's inside the Russell 2000. Its own leading three holdings are Tradeweb Markets, Juniper Networks and also Old Republic International, each resting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outmatching the Russell by much more than 2 percent factors during that time.Disclaimer.