.The Russell 2000 may have a productivity problem.Though the small-cap mark obtained 10.1% in July, it's dropped roughly 4% thus far in August, as of Thursday morning.ALPS' Paul Baiocchi achieves the volatile relocate to the mark's general arrangement, along with an estimation from Beauty Global showing 40% of those business have unfavorable incomes." [Entrepreneurs] have basically resigned themselves to the reality that through residing in the Russell 2000, I am actually simply visiting need to take the great with the poor," the agency's chief ETF strategist told CNBC's "ETF Edge" this week.To stay away from the productivity burden, Baiocchi advises real estate investors focus on high quality companies, considering additional discerning exchange-traded funds including his firm's ALPS O'Shares U.S. Small-Cap Top Quality Reward ETF Reveals (OUSM)." The idea is high quality providers that pay for and expand their dividends, and importantly, have less dryness than their peers," he pointed out. "It makes it possible for specialists as well as entrepreneurs who have actually seen small limits go laterally for five years to become designated to a group that's lagged." In addition to its own productivity display, the fund has only 107 inventories u00e2 $" a portion of what is actually inside the Russell 2000. Its top 3 holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each sitting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" surpassing the Russell by much more than 2 amount points during that time.Disclaimer.