.The Russell 2000 may have a success problem.Though the small-cap index obtained 10.1% in July, it is actually lost about 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi earns the inconsistent relocate to the mark's total composition, along with an estimate coming from Beauty Global presenting 40% of those providers have unfavorable revenues." [Capitalists] have actually basically resigned themselves to the reality that through residing in the Russell 2000, I'm simply mosting likely to have to take the really good with the poor," the company's main ETF planner said to CNBC's "ETF Advantage" this week.To steer clear of the earnings nuisance, Baiocchi suggests financiers focus on high quality business, checking out more selective exchange-traded funds including his organization's ALPS O'Shares U.S. Small-Cap Top Quality Dividend ETF Portions (OUSM)." The concept is high quality firms that pay out and also expand their returns, as well as significantly, have a lot less dryness than their peers," he said. "It enables consultants as well as entrepreneurs who have actually found little caps go sideways for five years to be allocated to a classification that's delayed." In addition to its own productivity display screen, the fund has simply 107 sells u00e2 $" a portion of what's inside the Russell 2000. Its best three holdings are actually Tradeweb Markets, Juniper Networks as well as 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 $" surpassing the Russell by greater than 2 portion factors because time.Disclaimer.