.The Russell 2000 may possess a success problem.Though the small-cap mark gained 10.1% in July, it is actually dropped roughly 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the unstable relocate to the mark's total arrangement, along with a quote coming from Apollo Global presenting 40% of those firms possess unfavorable profits." [Clients] have basically resigned on their own to the simple fact that through being in the Russell 2000, I am actually just heading to have to take the good with the bad," the agency's main ETF strategist said to CNBC's "ETF Edge" this week.To stay away from the profitability burden, Baiocchi advises clients focus on top quality firms, checking out more discerning exchange-traded funds including his agency's ALPS O'Shares U.S. Small-Cap High Quality Returns ETF Reveals (OUSM)." The suggestion is high quality providers that spend and develop their returns, as well as essentially, have less dryness than their peers," he said. "It permits specialists and financiers who have seen tiny limits go sidewards for five years to be assigned to a type that is actually delayed." Besides its own profits display screen, the fund contains simply 107 inventories u00e2 $" a portion of what's inside the Russell 2000. Its best 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Republic 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 time u00e2 $" outshining the Russell through much more than 2 portion factors because time.Disclaimer.