.The Russell 2000 might possess a success problem.Though the small-cap mark obtained 10.1% in July, it is actually gone down around 4% up until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the volatile transfer to the index's general arrangement, with a quote from Apollo Global revealing 40% of those providers have negative profits." [Investors] have generally resigned themselves to the truth that by remaining in the Russell 2000, I am actually just mosting likely to have to take the good along with the bad," the firm's chief ETF planner informed CNBC's "ETF Advantage" this week.To stay clear of the success drag, Baiocchi suggests capitalists prioritize top quality business, taking a look at additional particular exchange-traded funds like his agency's ALPS O'Shares united state Small-Cap Quality Returns ETF Reveals (OUSM)." The tip is high quality firms that pay out and also develop their dividends, as well as importantly, possess a lot less volatility than their peers," he stated. "It allows consultants as well as capitalists that have viewed little hats go sideways for 5 years to become alloted to a type that is actually delayed." In addition to its own success monitor, the fund includes only 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks and Old Republic International, each sitting at an approximately 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" exceeding the Russell through more than 2 amount aspects in that time.Disclaimer.