.The Russell 2000 might have a success problem.Though the small-cap mark gained 10.1% in July, it is actually gone down roughly 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the unstable relocate to the index's overall arrangement, with an estimate coming from Apollo Global revealing 40% of those providers possess damaging revenues." [Financiers] have actually generally surrendered themselves to the simple fact that through residing in the Russell 2000, I'm simply going to need to take the good along with the poor," the agency's main ETF strategist informed CNBC's "ETF Advantage" this week.To stay away from the profitability pain, Baiocchi recommends clients prioritize high quality business, examining more careful exchange-traded funds such as his company's O'Shares united state Small-Cap Top Quality Returns ETF Shares (OUSM)." The suggestion is actually premium business that pay out and also increase their rewards, and importantly, possess less volatility than their peers," he mentioned. "It allows specialists and also clients who have actually observed tiny caps go sideways for 5 years to become designated to a type that's lagged." In addition to its own profitability display, the fund contains simply 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its leading 3 holdings are actually Tradeweb Markets, Juniper Networks and also Old Republic International, each sitting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" exceeding the Russell through greater than 2 portion points because time.Disclaimer.