.The Russell 2000 might possess a productivity problem.Though the small-cap mark got 10.1% in July, it's fallen approximately 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the volatile relocate to the mark's total arrangement, with an estimate coming from Apollo Global presenting 40% of those firms have bad profits." [Real estate investors] have actually primarily surrendered on their own to the truth that through residing in the Russell 2000, I am actually just mosting likely to must take the great with the negative," the organization's main ETF strategist informed CNBC's "ETF Edge" this week.To prevent the profitability drag, Baiocchi suggests investors focus on high quality providers, checking out even more discerning exchange-traded funds like his organization's ALPS O'Shares united state Small-Cap Quality Reward ETF Allotments (OUSM)." The suggestion is high quality companies that pay for and grow their rewards, as well as essentially, have much less volatility than their peers," he claimed. "It allows experts and also capitalists that have viewed tiny hats go laterally for five years to be allocated to a group that's dragged." In addition to its earnings screen, the fund contains just 107 supplies u00e2 $" a portion of what's inside the Russell 2000. Its own best three holdings are Tradeweb Markets, Juniper Networks as well as Old Republic 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 time u00e2 $" outruning the Russell through more than 2 percentage factors because time.Disclaimer.