.The Russell 2000 may have a productivity problem.Though the small-cap index gained 10.1% in July, it is actually fallen approximately 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the unstable relocate to the mark's total arrangement, with an estimation coming from Beauty Global revealing 40% of those firms possess damaging profits." [Capitalists] have actually generally surrendered on their own to the simple fact that by residing in the Russell 2000, I'm merely mosting likely to must take the good along with the poor," the firm's principal ETF schemer said to CNBC's "ETF Advantage" this week.To stay clear of the earnings pain, Baiocchi recommends entrepreneurs focus on high quality providers, checking out more careful exchange-traded funds such as his organization's mountain range O'Shares united state Small-Cap Premium Dividend ETF Allotments (OUSM)." The idea is actually premium business that pay out and grow their returns, as well as importantly, possess much less dryness than their peers," he claimed. "It permits advisors as well as entrepreneurs who have actually found small caps go sideways for 5 years to become alloted to a category that is actually lagged." Besides its own productivity display screen, the fund includes merely 107 stocks u00e2 $" a portion of what is actually inside the Russell 2000. Its best 3 holdings are actually Tradeweb Markets, Juniper Networks and Old State International, each resting at an approximately 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outruning the Russell through more than 2 amount points during that time.Disclaimer.