.The Russell 2000 may possess a productivity problem.Though the small-cap mark got 10.1% in July, it's dropped around 4% thus far in August, since Thursday morning.ALPS' Paul Baiocchi earns the unstable moves to the index's overall arrangement, with an estimate coming from Apollo Global revealing 40% of those companies possess adverse profits." [Investors] have primarily resigned themselves to the reality that through being in the Russell 2000, I'm only mosting likely to must take the good with the negative," the organization's main ETF strategist told CNBC's "ETF Advantage" this week.To steer clear of the profitability nuisance, Baiocchi advises clients prioritize premium providers, checking out even more particular exchange-traded funds like his agency's mountain range O'Shares united state Small-Cap Premium Reward ETF Reveals (OUSM)." The concept is premium providers that pay for as well as expand their rewards, as well as significantly, possess less volatility than their peers," he mentioned. "It enables experts and entrepreneurs who have actually seen little caps go sideways for five years to become assigned to a group that is actually lagged." Aside from its own earnings screen, the fund consists of merely 107 supplies u00e2 $" a portion of what's inside the Russell 2000. Its own top 3 holdings are Tradeweb Markets, Juniper Networks and Old State 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 time u00e2 $" surpassing the Russell through more than 2 amount points because time.Disclaimer.