.The Russell 2000 may possess a productivity problem.Though the small-cap mark gained 10.1% in July, it's fallen around 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi earns the unpredictable transfer to the index's total arrangement, along with an estimation from Beauty Global revealing 40% of those providers possess unfavorable earnings." [Real estate investors] have actually primarily surrendered themselves to the simple fact that through being in the Russell 2000, I am actually merely visiting have to take the really good with the bad," the agency's main ETF planner told CNBC's "ETF Advantage" this week.To steer clear of the profitability pain, Baiocchi suggests investors prioritize premium companies, taking a look at additional particular exchange-traded funds including his agency's ALPS O'Shares U.S. Small-Cap Premium Reward ETF Portions (OUSM)." The idea is actually top quality companies that pay out as well as develop their dividends, and also significantly, possess a lot less volatility than their peers," he pointed out. "It enables experts and entrepreneurs who have observed tiny hats go sideways for 5 years to become designated to a group that's delayed." In addition to its profits display screen, the fund includes just 107 inventories u00e2 $" a fraction of what's inside the Russell 2000. Its own best 3 holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each sitting at a roughly 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $" outruning the Russell by more than 2 percentage aspects during that time.Disclaimer.