.The Russell 2000 may possess a success problem.Though the small-cap index acquired 10.1% in July, it's lost approximately 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi records the volatile transfer to the mark's overall arrangement, along with an estimate from Beauty Global revealing 40% of those providers possess damaging incomes." [Entrepreneurs] have generally resigned themselves to the truth that through being in the Russell 2000, I'm merely going to have to take the great with the negative," the agency's main ETF strategist said to CNBC's "ETF Advantage" this week.To avoid the profits bother, Baiocchi advises investors focus on premium firms, checking out more particular exchange-traded funds like his company's O'Shares united state Small-Cap Premium Reward ETF Reveals (OUSM)." The idea is top quality firms that pay as well as develop their returns, and significantly, possess much less volatility than their peers," he stated. "It makes it possible for advisors and financiers who have actually seen little caps go sideways for five years to become designated to a category that is actually delayed." Aside from its own profits screen, the fund has merely 107 inventories u00e2 $" a fraction of what is actually inside the Russell 2000. Its leading three holdings are Tradeweb Markets, Juniper Networks and Old Commonwealth International, each resting at an about 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to date u00e2 $" outruning the Russell through more than 2 percentage points because time.Disclaimer.