.The Russell 2000 might possess a success problem.Though the small-cap mark obtained 10.1% in July, it's gone down approximately 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi records the volatile relocate to the mark's total arrangement, with an estimation coming from Beauty Global showing 40% of those companies possess bad revenues." [Financiers] have actually generally surrendered themselves to the truth that by remaining in the Russell 2000, I am actually only heading to must take the really good with the bad," the agency's principal ETF planner informed CNBC's "ETF Edge" this week.To prevent the profitability burden, Baiocchi recommends capitalists prioritize premium companies, examining additional selective exchange-traded funds like his firm's O'Shares U.S. Small-Cap Quality Returns ETF Shares (OUSM)." The concept is actually top quality business that spend as well as develop their returns, and notably, have a lot less dryness than their peers," he stated. "It allows consultants and real estate investors that have viewed small hats go laterally for five years to become designated to a category that's dragged." Along with its own profitability screen, the fund has merely 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its own top three holdings are actually Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" surpassing the Russell by more than 2 percentage factors in that time.Disclaimer.