.The Russell 2000 may possess a productivity problem.Though the small-cap index obtained 10.1% in July, it's fallen roughly 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi records the volatile moves to the mark's overall composition, along with an estimation from Apollo Global showing 40% of those business have adverse revenues." [Clients] have essentially surrendered on their own to the fact that by remaining in the Russell 2000, I am actually just visiting must take the excellent along with the bad," the organization's chief ETF strategist told CNBC's "ETF Edge" this week.To avoid the earnings pain, Baiocchi proposes financiers prioritize quality business, examining even more discerning exchange-traded funds like his firm's mountain range O'Shares USA Small-Cap Premium Dividend ETF Allotments (OUSM)." The concept is top quality business that pay out and expand their dividends, and notably, possess less dryness than their peers," he pointed out. "It makes it possible for specialists and also investors that have actually seen little hats go laterally for five years to become assigned to a type that is actually delayed." Aside from its success monitor, the fund includes simply 107 supplies u00e2 $" a fraction of what is actually inside the Russell 2000. Its own best 3 holdings are actually Tradeweb Markets, Juniper Networks and Old Republic International, each sitting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outruning the Russell through much more than 2 percentage aspects because time.Disclaimer.