.The Russell 2000 might possess a success problem.Though the small-cap mark got 10.1% in July, it is actually gone down approximately 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi records the unpredictable transfer to the index's total arrangement, with a quote from Beauty Global showing 40% of those providers possess damaging earnings." [Financiers] have generally resigned on their own to the reality that by residing in the Russell 2000, I am actually simply visiting must take the good with the poor," the agency's chief ETF planner informed CNBC's "ETF Edge" this week.To steer clear of the profits pain, Baiocchi advises real estate investors focus on premium firms, taking a look at additional discerning exchange-traded funds including his company's ALPS O'Shares USA Small-Cap Quality Returns ETF Portions (OUSM)." The tip is high quality business that pay out as well as develop their returns, and essentially, possess much less dryness than their peers," he stated. "It allows consultants and also investors that have found tiny hats go sideways for five years to become designated to a group that's delayed." In addition to its own success display screen, the fund contains just 107 inventories u00e2 $" a fraction of what's inside the Russell 2000. Its best three holdings are actually Tradeweb Markets, Juniper Networks as well as Old State International, each resting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outruning the Russell through much more than 2 percent aspects during that time.Disclaimer.