.The Russell 2000 might have a success problem.Though the small-cap index acquired 10.1% in July, it is actually dropped roughly 4% until now in August, as of Thursday morning.ALPS' Paul Baiocchi records the unstable relocate to the index's general composition, along with a quote from Apollo Global revealing 40% of those providers possess damaging incomes." [Capitalists] have generally resigned themselves to the reality that by remaining in the Russell 2000, I am actually merely going to need to take the excellent along with the bad," the agency's main ETF planner informed CNBC's "ETF Edge" this week.To steer clear of the success pain, Baiocchi recommends entrepreneurs prioritize top quality providers, considering even more discerning exchange-traded funds such as his firm's ALPS O'Shares united state Small-Cap Quality Dividend ETF Reveals (OUSM)." The concept is high quality firms that pay and develop their returns, as well as significantly, possess a lot less volatility than their peers," he pointed out. "It makes it possible for consultants as well as clients that have actually viewed tiny limits go sideways for five years to become alloted to a type that's lagged." Besides its own success screen, the fund has only 107 supplies u00e2 $" a fraction of what's inside the Russell 2000. Its own top 3 holdings are Tradeweb Markets, Juniper Networks and Old State International, each resting at a roughly 2% weighting in the fund, per FactSet.Shares of the small-cap fund are down 1.5% month to day u00e2 $" outshining the Russell through much more than 2 percentage points in that time.Disclaimer.