.The Russell 2000 may possess a success problem.Though the small-cap index acquired 10.1% in July, it is actually lost roughly 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the unpredictable transfer to the index's total arrangement, with an estimate from Beauty Global revealing 40% of those providers possess unfavorable earnings." [Clients] have actually generally resigned on their own to the fact that by remaining in the Russell 2000, I am actually just visiting have to take the really good along with the bad," the firm's chief ETF planner said to CNBC's "ETF Advantage" this week.To stay away from the success burden, Baiocchi recommends entrepreneurs focus on top quality providers, looking at more particular exchange-traded funds like his agency's ALPS O'Shares united state Small-Cap Top Quality Reward ETF Allotments (OUSM)." The suggestion is actually premium providers that pay for and grow their returns, and essentially, possess less volatility than their peers," he said. "It permits consultants and investors that have observed little caps go sidewards for five years to be alloted to a type that is actually delayed." Along with its profitability display, the fund consists of only 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its best 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old State International, each resting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outmatching the Russell through more than 2 portion factors during that time.Disclaimer.