.The Russell 2000 may have a success problem.Though the small-cap index got 10.1% in July, it's dropped approximately 4% so far in August, as of Thursday morning.ALPS' Paul Baiocchi chalks up the volatile transfer to the mark's overall arrangement, along with an estimation coming from Apollo Global presenting 40% of those business have negative profits." [Investors] have primarily surrendered on their own to the fact that by being in the Russell 2000, I am actually simply going to have to take the great with the negative," the firm's principal ETF planner informed CNBC's "ETF Upper hand" this week.To stay away from the profits burden, Baiocchi recommends real estate investors prioritize top quality firms, considering even more careful exchange-traded funds including his firm's mountain range O'Shares united state Small-Cap Quality Reward ETF Reveals (OUSM)." The tip is actually top quality firms that spend as well as develop their dividends, and also notably, possess less volatility than their peers," he mentioned. "It enables specialists and real estate investors who have viewed small caps go laterally for five years to become designated to a type that is actually lagged." Along with its profits monitor, the fund contains simply 107 sells u00e2 $" a portion of what is actually inside the Russell 2000. Its top three holdings are Tradeweb Markets, Juniper Networks and also Old State International, each sitting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" surpassing the Russell by much more than 2 percentage aspects because time.Disclaimer.