.The Russell 2000 may possess a productivity problem.Though the small-cap index got 10.1% in July, it is actually gone down about 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable relocate to the index's general arrangement, along with a price quote from Apollo Global presenting 40% of those providers possess unfavorable earnings." [Investors] have primarily surrendered on their own to the reality that by being in the Russell 2000, I am actually just visiting need to take the good with the poor," the agency's principal ETF strategist told CNBC's "ETF Upper hand" this week.To stay away from the earnings bother, Baiocchi recommends financiers focus on top quality providers, considering more selective exchange-traded funds including his agency's mountain range O'Shares U.S. Small-Cap Top Quality Dividend ETF Reveals (OUSM)." The idea is actually premium companies that spend and also develop their dividends, as well as significantly, have less volatility than their peers," he mentioned. "It allows consultants and financiers that have seen tiny limits go sidewards for five years to be alloted to a group that's lagged." Aside from its own earnings monitor, the fund consists of just 107 inventories u00e2 $" a fraction of what's inside the Russell 2000. Its own top 3 holdings are Tradeweb Markets, Juniper Networks and Old Republic International, each sitting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" exceeding the Russell through greater than 2 percent factors in that time.Disclaimer.