.The Russell 2000 may have a productivity problem.Though the small-cap mark gained 10.1% in July, it's fallen about 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi records the unpredictable relocate to the index's total composition, with a price quote from Apollo Global revealing 40% of those providers have bad revenues." [Real estate investors] have actually primarily resigned on their own to the reality that through remaining in the Russell 2000, I'm only mosting likely to have to take the really good along with the poor," the company's main ETF schemer told CNBC's "ETF Advantage" this week.To avoid the productivity bother, Baiocchi proposes capitalists focus on premium business, examining more particular exchange-traded funds including his company's mountain range O'Shares U.S. Small-Cap High Quality Reward ETF Allotments (OUSM)." The tip is premium providers that pay out and also grow their returns, and notably, possess a lot less dryness than their peers," he pointed out. "It makes it possible for advisors and also investors who have viewed tiny hats go sideways for five years to become designated to a classification that is actually dragged." Aside from its own success screen, the fund consists of merely 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its own top three holdings are Tradeweb Markets, Juniper Networks and also Old Commonwealth International, each resting at an approximately 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to time u00e2 $" outmatching the Russell through much more than 2 portion factors during that time.Disclaimer.