.The Russell 2000 might have a success problem.Though the small-cap mark got 10.1% in July, it is actually fallen roughly 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi earns the unpredictable moves to the index's general composition, along with a price quote from Apollo Global presenting 40% of those firms possess bad earnings." [Capitalists] have generally surrendered themselves to the fact that by being in the Russell 2000, I'm only heading to must take the really good along with the negative," the agency's principal ETF strategist informed CNBC's "ETF Edge" this week.To prevent the productivity nuisance, Baiocchi advises real estate investors focus on high quality providers, examining more particular exchange-traded funds like his firm's ALPS O'Shares USA Small-Cap High Quality Dividend ETF Shares (OUSM)." The suggestion is actually quality companies that spend as well as expand their dividends, as well as notably, have much less volatility than their peers," he said. "It makes it possible for consultants as well as entrepreneurs who have actually observed small hats go sideways for five years to become alloted to a type that is actually lagged." Aside from its earnings display, the fund contains simply 107 sells u00e2 $" a portion of what is actually inside the Russell 2000. Its own top three holdings are actually Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each sitting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" exceeding the Russell through much more than 2 portion points in that time.Disclaimer.