.The Russell 2000 might have a productivity problem.Though the small-cap index obtained 10.1% in July, it's fallen around 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the inconsistent transfer to the mark's overall arrangement, with an estimate coming from Apollo Global revealing 40% of those business possess damaging earnings." [Investors] have actually primarily surrendered themselves to the truth that through residing in the Russell 2000, I'm just mosting likely to have to take the excellent with the negative," the organization's principal ETF schemer said to CNBC's "ETF Edge" this week.To stay away from the earnings bother, Baiocchi recommends clients focus on premium companies, considering additional careful exchange-traded funds such as his agency's O'Shares united state Small-Cap High Quality Reward ETF Reveals (OUSM)." The suggestion is actually premium providers that pay as well as increase their returns, and significantly, possess less dryness than their peers," he said. "It enables consultants as well as capitalists that have found small hats go sideways for 5 years to become assigned to a type that is actually dragged." Aside from its productivity display screen, the fund contains just 107 stocks u00e2 $" a portion of what is actually inside the Russell 2000. Its leading three holdings are actually Tradeweb Markets, Juniper Networks and Old Republic International, each sitting at an around 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outruning the Russell through greater than 2 portion factors in that time.Disclaimer.