.The Russell 2000 might possess a productivity problem.Though the small-cap index acquired 10.1% in July, it's gone down about 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the inconsistent relocate to the index's overall arrangement, with a price quote coming from Apollo Global showing 40% of those companies have adverse earnings." [Investors] have actually basically surrendered themselves to the truth that through residing in the Russell 2000, I'm simply heading to need to take the really good along with the negative," the organization's chief ETF schemer said to CNBC's "ETF Upper hand" this week.To steer clear of the productivity bother, Baiocchi proposes investors prioritize high quality providers, looking at even more selective exchange-traded funds such as his agency's mountain range O'Shares USA Small-Cap Premium Reward ETF Reveals (OUSM)." The suggestion is actually high quality providers that pay out as well as grow their dividends, and also essentially, possess much less dryness than their peers," he pointed out. "It enables consultants and also financiers that have viewed tiny limits go laterally for five years to be alloted to a group that's lagged." Along with its own success screen, the fund contains only 107 stocks u00e2 $" a portion of what's inside the Russell 2000. Its leading 3 holdings are Tradeweb Markets, Juniper Networks and Old State 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 date u00e2 $" outshining the Russell by much more than 2 portion points during that time.Disclaimer.