.The Russell 2000 may have a success problem.Though the small-cap index got 10.1% in July, it's gone down around 4% so far in August, since Thursday morning.ALPS' Paul Baiocchi chalks up the volatile transfer to the mark's overall composition, with a quote from Apollo Global showing 40% of those business have negative incomes." [Capitalists] have actually basically resigned on their own to the simple fact that through residing in the Russell 2000, I am actually only heading to must take the really good with the poor," the company's principal ETF strategist said to CNBC's "ETF Upper hand" this week.To avoid the success burden, Baiocchi advises entrepreneurs prioritize high quality firms, taking a look at even more discerning exchange-traded funds including his agency's ALPS O'Shares USA Small-Cap Quality Dividend ETF Shares (OUSM)." The idea is high quality companies that pay as well as develop their rewards, and also essentially, have much less volatility than their peers," he pointed out. "It allows advisors and real estate investors that have actually observed small hats go sidewards for five years to be alloted to a group that is actually lagged." In addition to its profitability screen, the fund has just 107 stocks u00e2 $" a portion of what is actually inside the Russell 2000. Its own leading three holdings are Tradeweb Markets, Juniper Networks and Old Republic International, each sitting at an around 2% weighting in the fund, per FactSet.Shares of the small-cap fund are actually down 1.5% month to day u00e2 $" outmatching the Russell through much more than 2 amount points because time.Disclaimer.