.The Russell 2000 might have a success problem.Though the small-cap index acquired 10.1% in July, it's lost approximately 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the inconsistent transfer to the mark's total arrangement, with an estimation from Apollo Global revealing 40% of those providers have damaging revenues." [Financiers] have actually generally surrendered themselves to the truth that by residing in the Russell 2000, I'm just going to have to take the really good with the bad," the company's principal ETF schemer said to CNBC's "ETF Upper hand" this week.To stay away from the earnings bother, Baiocchi recommends financiers prioritize top quality companies, taking a look at additional discerning exchange-traded funds like his firm's ALPS O'Shares USA Small-Cap Quality Reward ETF Reveals (OUSM)." The suggestion is actually high quality providers that pay as well as increase their returns, and significantly, have much less dryness than their peers," he pointed out. "It enables specialists and also capitalists that have found tiny hats go laterally for five years to be allocated to a classification that is actually delayed." In addition to its own earnings monitor, the fund has merely 107 sells u00e2 $" a portion of what's inside the Russell 2000. Its leading 3 holdings are actually Tradeweb Markets, Juniper Networks and also Old State International, each sitting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" outruning the Russell by more than 2 portion factors during that time.Disclaimer.