.The Russell 2000 may have a success problem.Though the small-cap mark gained 10.1% in July, it's lost about 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi achieves the unstable relocate to the mark's total arrangement, along with a price quote coming from Apollo Global showing 40% of those providers have damaging profits." [Clients] have generally surrendered themselves to the truth that by remaining in the Russell 2000, I'm merely heading to need to take the great with the poor," the company's principal ETF planner told CNBC's "ETF Advantage" this week.To prevent the earnings drag, Baiocchi recommends investors focus on top quality business, looking at additional selective exchange-traded funds like his company's ALPS O'Shares U.S. Small-Cap Top Quality Returns ETF Portions (OUSM)." The tip is premium business that pay and also develop their rewards, and also importantly, possess much less volatility than their peers," he said. "It allows specialists and also real estate investors that have viewed little caps go laterally for five years to be allocated to a classification that is actually dragged." Besides its own productivity display, the fund contains merely 107 supplies u00e2 $" a portion of what's inside the Russell 2000. Its leading 3 holdings are actually Tradeweb Markets, Juniper Networks as well as Old Republic 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 $" surpassing the Russell through greater than 2 percentage points in that time.Disclaimer.