.The Russell 2000 may have a productivity problem.Though the small-cap index obtained 10.1% in July, it's gone down about 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi records the unpredictable relocate to the mark's general arrangement, along with an estimate from Beauty Global showing 40% of those companies possess unfavorable profits." [Investors] have actually primarily surrendered on their own to the fact that through residing in the Russell 2000, I am actually simply visiting need to take the really good with the negative," the company's chief ETF strategist informed CNBC's "ETF Edge" this week.To steer clear of the earnings bother, Baiocchi suggests real estate investors prioritize top quality business, looking at even more particular exchange-traded funds such as his agency's O'Shares united state Small-Cap Quality Dividend ETF Reveals (OUSM)." The idea is actually top quality business that pay for and also increase their rewards, and also significantly, have less volatility than their peers," he claimed. "It makes it possible for advisors and financiers that have viewed little caps go sideways for 5 years to be assigned to a category that's lagged." Aside from its profitability display, the fund has merely 107 stocks u00e2 $" a fraction of what is actually inside the Russell 2000. Its own leading 3 holdings are Tradeweb Markets, Juniper Networks and also Old State International, each resting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outruning the Russell by greater than 2 portion aspects because time.Disclaimer.