.The Russell 2000 might have a success problem.Though the small-cap index gained 10.1% in July, it's gone down approximately 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the volatile transfer to the mark's overall composition, with a quote from Apollo Global presenting 40% of those providers have adverse profits." [Entrepreneurs] have primarily resigned on their own to the reality that through remaining in the Russell 2000, I'm just going to need to take the great with the bad," the company's principal ETF strategist informed CNBC's "ETF Advantage" this week.To stay clear of the success drag, Baiocchi advises real estate investors prioritize top quality companies, looking at even more discerning exchange-traded funds like his organization's O'Shares U.S. Small-Cap Premium Returns ETF Reveals (OUSM)." The tip is quality business that spend as well as develop their returns, and importantly, possess a lot less dryness than their peers," he stated. "It enables experts as well as investors that have actually viewed small limits go laterally for five years to become allocated to a classification that is actually delayed." Aside from its productivity monitor, the fund has just 107 stocks u00e2 $" a portion of what's inside the Russell 2000. Its best three holdings are actually 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 time u00e2 $" outruning the Russell through much more than 2 portion points because time.Disclaimer.