.The Russell 2000 may have a productivity problem.Though the small-cap index obtained 10.1% in July, it's gone down about 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi chalks up the volatile moves to the index's total arrangement, along with a quote coming from Apollo Global showing 40% of those business have negative earnings." [Real estate investors] have actually basically resigned themselves to the fact that by being in the Russell 2000, I'm only visiting have to take the excellent along with the bad," the company's main ETF planner informed CNBC's "ETF Edge" this week.To stay clear of the productivity burden, Baiocchi suggests entrepreneurs prioritize high quality business, looking at even more careful exchange-traded funds like his firm's O'Shares united state Small-Cap Top Quality Reward ETF Portions (OUSM)." The concept is actually top quality business that pay out and grow their dividends, and also notably, have a lot less dryness than their peers," he mentioned. "It permits experts as well as real estate investors who have actually observed little limits go laterally for 5 years to become allocated to a type that is actually delayed." Aside from its profitability monitor, the fund has just 107 supplies u00e2 $" a portion of what's inside the Russell 2000. Its best three 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 actually down 1.5% month to day u00e2 $" outruning the Russell by much more than 2 amount points because time.Disclaimer.