.The Russell 2000 may have a success problem.Though the small-cap mark gained 10.1% in July, it's dropped about 4% up until now in August, since Thursday morning.ALPS' Paul Baiocchi records the volatile relocate to the mark's general arrangement, with an estimation from Beauty Global presenting 40% of those business possess damaging revenues." [Entrepreneurs] have essentially resigned on their own to the reality that by residing in the Russell 2000, I am actually only heading to have to take the excellent with the poor," the company's main ETF planner told CNBC's "ETF Upper hand" this week.To prevent the success nuisance, Baiocchi suggests clients focus on high quality firms, checking out more careful exchange-traded funds like his company's O'Shares U.S. Small-Cap Top Quality Returns ETF Shares (OUSM)." The concept is actually high quality providers that pay for as well as expand their returns, and notably, possess less dryness than their peers," he claimed. "It allows consultants as well as real estate investors who have actually viewed tiny limits go sideways for five years to be allocated to a category that is actually dragged." Aside from its earnings display, the fund has just 107 supplies u00e2 $" a fraction of what is actually inside the Russell 2000. Its own leading three holdings are Tradeweb Markets, Juniper Networks as well as Old Commonwealth 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 time u00e2 $" outmatching the Russell through more than 2 portion factors in that time.Disclaimer.