.The Russell 2000 may have a success problem.Though the small-cap mark obtained 10.1% in July, it is actually fallen about 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the unpredictable transfer to the index's general arrangement, with an estimate coming from Beauty Global revealing 40% of those companies possess negative revenues." [Financiers] have essentially surrendered on their own to the reality that through residing in the Russell 2000, I'm simply visiting must take the really good along with the poor," the organization's chief ETF schemer said to CNBC's "ETF Advantage" this week.To prevent the success drag, Baiocchi proposes investors prioritize top quality business, checking out even more selective exchange-traded funds such as his agency's O'Shares united state Small-Cap Premium Dividend ETF Portions (OUSM)." The tip is actually quality firms that spend as well as increase their rewards, and importantly, possess a lot less volatility than their peers," he said. "It permits consultants as well as entrepreneurs who have viewed small limits go sidewards for five years to become allocated to a category that is actually lagged." Besides its profitability screen, the fund includes merely 107 sells u00e2 $" a fraction of what's inside the Russell 2000. Its own best 3 holdings are actually Tradeweb Markets, Juniper Networks and Old Republic International, each sitting at a roughly 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outruning the Russell by greater than 2 percent points because time.Disclaimer.