.The Russell 2000 might possess a success problem.Though the small-cap index gained 10.1% in July, it is actually lost around 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi records the unstable transfer to the mark's total arrangement, along with a price quote from Apollo Global revealing 40% of those firms possess negative revenues." [Entrepreneurs] have generally surrendered themselves to the reality that by residing in the Russell 2000, I'm merely heading to need to take the great with the bad," the company's main ETF strategist said to CNBC's "ETF Advantage" this week.To steer clear of the profitability drag, Baiocchi suggests clients focus on quality companies, looking at even more particular exchange-traded funds such as his agency's ALPS O'Shares U.S. Small-Cap Premium Reward ETF Portions (OUSM)." The tip is quality companies that pay and also increase their dividends, as well as significantly, possess much less volatility than their peers," he said. "It permits consultants as well as financiers that have found tiny caps go sideways for five years to become assigned to a group that's dragged." Aside from its earnings monitor, the fund contains just 107 stocks u00e2 $" a portion of what is actually inside the Russell 2000. Its top three holdings are actually Tradeweb Markets, Juniper Networks as well as Old Republic International, each sitting at an around 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 aspects during that time.Disclaimer.