.The Russell 2000 might have a productivity problem.Though the small-cap index got 10.1% in July, it is actually lost around 4% until now in August, since Thursday morning.ALPS' Paul Baiocchi earns the unpredictable transfer to the index's general arrangement, along with a quote from Beauty Global presenting 40% of those providers have damaging earnings." [Financiers] have actually generally surrendered on their own to the fact that through residing in the Russell 2000, I'm merely mosting likely to have to take the excellent along with the bad," the agency's chief ETF strategist said to CNBC's "ETF Upper hand" this week.To stay clear of the profits burden, Baiocchi advises entrepreneurs focus on premium business, examining even more discerning exchange-traded funds including his organization's mountain range O'Shares U.S. Small-Cap Premium Returns ETF Reveals (OUSM)." The idea is actually top quality firms that pay and increase their dividends, and significantly, have a lot less dryness than their peers," he stated. "It allows experts as well as investors that have actually seen little limits go sideways for 5 years to become designated to a classification that's delayed." Along with its profitability screen, the fund has only 107 stocks u00e2 $" a portion of what's inside the Russell 2000. Its best three holdings are actually Tradeweb Markets, Juniper Networks and Old Commonwealth International, each resting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to time u00e2 $" outperforming the Russell through much more than 2 percent points because time.Disclaimer.