.The Russell 2000 might possess a success problem.Though the small-cap mark gained 10.1% in July, it is actually fallen around 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi records the unpredictable relocate to the mark's total arrangement, with a quote coming from Apollo Global showing 40% of those firms possess unfavorable incomes." [Entrepreneurs] have actually primarily surrendered on their own to the fact that by being in the Russell 2000, I'm merely going to must take the excellent along with the negative," the firm's main ETF strategist told CNBC's "ETF Edge" this week.To prevent the profits nuisance, Baiocchi advises clients prioritize high quality companies, considering even more particular exchange-traded funds like his agency's ALPS O'Shares U.S. Small-Cap Top Quality Reward ETF Reveals (OUSM)." The suggestion is actually high quality companies that pay for and also increase their rewards, as well as significantly, possess much less volatility than their peers," he stated. "It enables specialists and capitalists who have actually found small hats go sidewards for five years to be assigned to a category that is actually delayed." In addition to its own profitability display screen, the fund contains just 107 inventories u00e2 $" a portion of what's inside the Russell 2000. Its own top 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each resting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outshining the Russell through more than 2 amount factors because time.Disclaimer.