.The Russell 2000 might possess a productivity problem.Though the small-cap mark obtained 10.1% in July, it’s dropped approximately 4% up until now in August, as of Thursday morning.ALPS’ Paul Baiocchi records the inconsistent relocate to the mark’s total composition, along with an estimate from Apollo Global revealing 40% of those business have damaging incomes.” [Clients] have actually essentially resigned themselves to the truth that through being in the Russell 2000, I’m simply visiting must take the really good along with the negative,” the firm’s chief ETF strategist said to CNBC’s “ETF Edge” this week.To stay away from the earnings bother, Baiocchi proposes financiers focus on quality business, examining even more selective exchange-traded funds including his agency’s O’Shares USA Small-Cap High Quality Dividend ETF Portions (OUSM).” The tip is actually premium business that pay and also grow their dividends, and also importantly, have a lot less dryness than their peers,” he said. “It enables advisors and also investors that have observed tiny limits go sideways for five years to become alloted to a classification that is actually dragged.” Aside from its earnings display screen, the fund has only 107 stocks u00e2 $” a fraction of what’s inside the Russell 2000. Its own top 3 holdings are actually Tradeweb Markets, Juniper Networks and also Old Republic International, each resting at a roughly 2% weighting in the fund, every FactSet.Shares of the small-cap fund are down 1.5% month to date u00e2 $” exceeding the Russell through greater than 2 percent points during that time.Disclaimer.