.The Russell 2000 might possess a success problem.Though the small-cap mark acquired 10.1% in July, it is actually dropped around 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi earns the inconsistent relocate to the mark's overall composition, along with a price quote coming from Beauty Global presenting 40% of those firms have adverse profits." [Financiers] have primarily resigned on their own to the truth that by residing in the Russell 2000, I'm just visiting must take the really good along with the bad," the company's principal ETF schemer informed CNBC's "ETF Upper hand" this week.To avoid the success burden, Baiocchi advises real estate investors prioritize high quality business, considering more discerning exchange-traded funds like his company's O'Shares USA Small-Cap Quality Dividend ETF Reveals (OUSM)." The idea is premium providers that pay out and grow their dividends, and also notably, possess less dryness than their peers," he claimed. "It enables consultants and also clients who have actually found little limits go sidewards for 5 years to become allocated to a type that's lagged." Aside from its own profitability display screen, the fund includes only 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its top three holdings are Tradeweb Markets, Juniper Networks as well as Old Commonwealth International, each sitting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" surpassing the Russell through much more than 2 percentage factors because time.Disclaimer.