.The Russell 2000 may have a productivity problem.Though the small-cap mark acquired 10.1% in July, it is actually gone down around 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the volatile relocate to the mark's total composition, along with a price quote coming from Beauty Global revealing 40% of those business possess bad profits." [Real estate investors] have actually generally resigned on their own to the fact that by being in the Russell 2000, I am actually only going to must take the good along with the bad," the company's chief ETF schemer informed CNBC's "ETF Edge" this week.To stay clear of the profitability drag, Baiocchi proposes real estate investors focus on premium providers, checking out additional discerning exchange-traded funds such as his organization's mountain range O'Shares U.S. Small-Cap Top Quality Returns ETF Reveals (OUSM)." The idea is top quality firms that pay as well as grow their dividends, as well as notably, have much less volatility than their peers," he claimed. "It makes it possible for experts and also capitalists that have actually seen tiny limits go sidewards for five years to become allocated to a group that's dragged." Along with its earnings display, the fund contains just 107 supplies u00e2 $" a portion of what is actually inside the Russell 2000. Its top three holdings are Tradeweb Markets, Juniper Networks and Old Republic International, each resting at an approximately 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outruning the Russell by much more than 2 portion points in that time.Disclaimer.