.The Russell 2000 might possess a productivity problem.Though the small-cap mark gained 10.1% in July, it's gone down roughly 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unpredictable transfer to the mark's total arrangement, with an estimation coming from Apollo Global revealing 40% of those firms have negative profits." [Clients] have actually generally surrendered themselves to the simple fact that through remaining in the Russell 2000, I'm simply heading to need to take the excellent along with the negative," the organization's principal ETF strategist informed CNBC's "ETF Advantage" this week.To prevent the productivity burden, Baiocchi suggests capitalists prioritize quality business, taking a look at even more discerning exchange-traded funds such as his company's mountain range O'Shares U.S. Small-Cap Quality Returns ETF Shares (OUSM)." The tip is actually high quality firms that pay for as well as expand their dividends, as well as essentially, possess less dryness than their peers," he stated. "It enables consultants and also entrepreneurs that have found tiny caps go sideways for 5 years to become assigned to a classification that is actually delayed." In addition to its profits screen, the fund has only 107 sells u00e2 $" a fraction of what is actually inside the Russell 2000. Its leading three holdings are actually Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an approximately 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outruning the Russell by more than 2 percentage aspects during that time.Disclaimer.