.The Russell 2000 may have a success problem.Though the small-cap index gained 10.1% in July, it's fallen approximately 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi chalks up the unstable relocate to the mark's general composition, with a quote coming from Beauty Global revealing 40% of those business have negative revenues." [Clients] have generally resigned on their own to the simple fact that through being in the Russell 2000, I am actually simply heading to must take the good with the bad," the organization's principal ETF planner informed CNBC's "ETF Advantage" this week.To prevent the success bother, Baiocchi recommends capitalists focus on high quality firms, considering additional discerning exchange-traded funds like his agency's mountain range O'Shares U.S. Small-Cap Top Quality Reward ETF Portions (OUSM)." The suggestion is actually premium providers that pay for and also expand their dividends, and also essentially, have a lot less dryness than their peers," he claimed. "It permits consultants and financiers who have actually observed tiny caps go sideways for five years to become assigned to a type that is actually dragged." Besides its success monitor, the fund consists of simply 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks as well as Old State International, each sitting at an about 2% weighting in the fund, every FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" surpassing the Russell through greater than 2 amount aspects during that time.Disclaimer.